Los Gatos City Council
November 15, 2022

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6004.4.5.4 Stationary tanks. Stationary tanks shall be labeled with the maximum rate of release for the compressed gas contained based on valves or fittings that are inserted directly into the tank. Where multiple valves or fittings are provided, the maximum flow rate of release for valves or fittings with the highest flow rate shall be indicated. Where liquefied compressed gases are in contact with valves or fittings, the liquid flow rate shall be utilized for computation purposes. Flow rates indicated on the label shall be converted to cubic feet per minute (cfm/min) (m3/s) of gas at normal temperature and pressure (NTP).
6004.4.5.5 Portable tanks and cylinders. The maximum flow rate of release for portable tanks and cylinders shall be calculated based on the total release from the cylinder or tank within the time specified in Table 6004.2.2.7.5. Where portable tanks or cylinders are equipped with approved excess flow or reduced flow valves, the worst-case release shall be determined by the maximum achievable flow from the valve as determined by the valve manufacturer or compressed gas supplier.

Reduced flow and excess flow valves shall be permanently marked by the valve manufacturer to indicate the maximum design flow rate. Such markings shall indicate the flow rate for air under normal temperature and pressure. 6004.4.6. Emergency power. Emergency power shall be provided for the following systems in accordance with Section 604:

1. Exhaust ventilation system.

2. Treatment system.

3. Gas detection system.

4. Smoke detection system.
6004.4.6.1. Fail-safe systems. Emergency power shall not be required for mechanical exhaust ventilation and treatment systems where approved fail-safe systems are installed and designed to stop gas flow.
6004.4.7. Automatic fire detection system. An approved automatic fire detection system shall be installed in rooms or areas where highly toxic, toxic, and moderately toxic compressed gases are stored or used. Activation of the detection system shall sound a local alarm. The fire detection system shall comply with Section 907. 6004.4.8. Gas detection system. A gas detection system complying with Section 916 shall be provided to detect the presence of gas at or below the PEL or ceiling limit of the gas for which detection is provided.

Exceptions:

1. A gas detection system is not required for toxic and moderately toxic gases when the physiological warning threshold level for the gas is at a level below the accepted PEL for the gas.

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2. A gas detection system is not required for highly toxic, toxic, and moderately toxic gases where cylinders, portable tanks, and all non-continuously welded connects are within a gas cabinet or exhausted enclosures. 6004.4.8.1. Alarms. The gas detection system shall initiate a local alarm and transmit a signal to an approved location.
6004.4.8.2. Shut off of gas supply. The gas detection system shall automatically close the shut off valve at the source on gas supply piping and tubing related to the system being monitored for whichever gas is detected.

Exception: Automatic shutdown is not required for highly toxic, toxic, and moderately toxic compressed gas systems where all of the following controls are provided:

1. Constantly attended / supervised.

2. Provided with emergency shutoff valves that have ready access.

Chapter 64 PYROPHORIC MATERIALS
Amend Chapter 64 of the 2022 California Fire Code as follows:

SECTION 6405 USE
Section 6405.3.1 is added to read:
6405.3.1 Silane distribution systems automatic shutdown.

Silane distribution systems shall automatically shut down at the source upon activation of the gas detection system at levels above the alarm level and/or failure of the ventilation system for the silane distribution system.

CHAPTER 80 REFERENCE STANDARD
Amend Chapter 80 of the 2022 California Fire Code as follows:

Add the following reference standard to read:
855 – 20: Standard for the Installation of Stationary Energy Storage Systems

APPENDIX B FIRE FLOW REQUIREMENTS FOR BUILDINGS
SECTION B105 FIRE FLOW REQUIREMENTS FOR BUILDINGS
Section B105.2 is amended to read:

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B105.2 Buildings other than one- and two-family dwellings, Group R-3 and R-4 buildings and townhouses. The minimum fire-flow and flow duration for buildings other than one- and twofamily dwellings, Group R-3 and R-4 buildings and townhouses shall be as specified in Tables B105.1(2) and B105.2.

Exceptions: [SFM] Group B, S-2 and U occupancies having a floor area not exceeding 1,000 square feet, primarily constructed of noncombustible exterior walls with wood or steel roof framing, having a Class A roof assembly, with uses limited to the following or similar uses:

1. California State Parks buildings of an accessory nature (restrooms).

2. Safety roadside rest areas (SRRA), public restrooms.

3. Truck inspection facilities (TIF), CHP office space and vehicle inspection bays.

4. Sand/salt storage buildings, storage of sand and salt.

The maximum fire flow reduction for all commercial buildings greater than 30,000 square feet and residential podium buildings shall not exceed 25 percent of the fire flow specified in Table B105.1(2). The maximum fire flow reduction for all other buildings shall not exceed 50 percent of the fire flow specified in Table B105.1(2).

APPENDIX C FIRE HYDRANT LOCATIONS AND DISTRIBUTION
SECTION C102 NUMBER OF FIRE HYDRANTS
Section C102.1 is amended to read:

C102.1 Minimum number of fire hydrants for a building. The number of fire hydrants available to a building shall be not less than the minimum specified in Table C102.1, utilizing the base fire flow without fire sprinkler reduction.

APPENDIX D FIRE APPARATUS ACCESS ROADS
SECTION D103 MINIMUM SPECIFICATION
Section D103.1 is deleted:

Section D103.2 is amended as follows:

D103.2 Grade. The maximum grade of a fire department apparatus access road shall not exceed 15-percent, unless approved by the fire code official.

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Section D103.3 is amended as follows:

D103.3 Turning radius. The required turning radius of a fire apparatus access roads shall be a minimum of 30 feet inside, and a minimum of 50 feet outside.

Section D103.4 is amended to read:

D103.4 Dead ends. Dead-end fire apparatus access roads and/or driveways in excess of 150 feet (45 720 mm) shall be provided with width and turnaround provisions in accordance with Santa Clara County Fire Department apparatus access and turnaround standards.

Section D103.6 is amended to read:

D103.6 Signs. Where required by the Fire Code Official, fire apparatus access roads shall be designated and marked as a fire lane as set forth in Section 22500.1 of the California Vehicle Code and the Santa Clara County Fire Department A-6 Standard. Signs shall have a minimum dimension of 12 inches (305 mm) wide by 18 inches (457 mm) high and have red letters on a white reflective background. Signs shall be posted on one or both sides of the fire apparatus road as required by Section D103.6.1 or D103.6.2.

Section 4. Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidly shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. This Town Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed, and the balance of the ordinance be enforced.

Section 5. Effect of Ordinance. Except as expressly modified in this Ordinance, all other sections set forth in the Los Gatos Town Code shall remain unchanged and shall be in full force and effect.

Section 6. Effective Date. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on November 1, 2022 and adopted by the following vote as an ordinance of the Town of Los Gatos at a meeting of the Town Council of the Town of Los Gatos on November 15, 2022 and becomes effective January 1, 2023.

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Section 7. Publication. The Town Clerk will publish this ordinance in a newspaper of general circulation within 15 days of its adoption. In lieu of publication of the full text of the ordinance within fifteen (15) days after its adoption, a summary of the ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the Town Council and a certified copy shall be posted in the office of the Town Clerk, pursuant to GC 36933(c)(1).

Section 8. CEQA. Adoption of this ordinance is not a project subject to CEQA, because it can be seen with certainty that it will not impact the physical environment. (CEQA Guidelines Section 15378.) If adoption of this ordinance were a project, it would be categorically exempt from CEQA as an action by a regulatory agency for the protection of natural resources (CEQA Guidelines Section 15307) and the environment (CEQA Guidelines Section 15308).

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Ordinance December xx, 2022
COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:
__________________________________

ROB RENNIE

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
____________________________________

WENDY WOOD

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

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ATTACHMENT 1
This Page
Intentionally
Left Blank

PREPARED BY: WooJae Kim
Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/15/22
ITEM NO: 7
DATE: November 1, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832-4505):
a. Authorize the Town Manager to Execute the 2016 Measure B Funding Agreement with the Santa Clara Valley Transportation Authority to Accept Grant Funding in the Amount of $693,500 for the Project Construction; and
b. Authorize the Town Manager to Negotiate and Execute a Transportation Fund for Clean Air Funding Agreement with the Santa Clara Valley Transportation Authority to Accept Grant Funding in the Amount of $755,921 for the Project Construction.

RECOMMENDATION:

Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832-4505):
a. Authorize the Town Manager to execute the 2016 Measure B funding agreement (Attachment 1) with the Santa Clara Valley Transportation Authority (VTA) to accept grant funding in the amount of $693,500 for the project construction; and b. Authorize the Town Manager to negotiate and execute a Transportation Fund for Clean Air funding agreement (Attachment 2) with VTA to accept grant funding in the amount of $755,921 for the project construction.

BACKGROUND:

The adopted Fiscal Year (FY) 2022/23-2026/27 Capital Improvement Program (CIP) Budget designates funding for Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832- 4505) to install bicycle and pedestrian connections between Highway 9 and the Los Gatos Creek Trail. Proposed trail connections include the installation of a bicycle and pedestrian bridge across Los Gatos Creek just south of the Highway 9 and a pedestrian switchback ramp on the

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SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832-4505) DATE: November 1, 2022
BACKGROUND (continued):
north side of Highway 9. The Town received $343,000 in One Bay Area Grant Cycle 2 (OBAG 2) grant funds for the design phase and the design work started in October 2019. This project has received long-standing support from the community, schools, Complete Streets and Transportation Commission, and Town Council.

The Bicycle and Pedestrian Master Plan updated in 2020 identified the trailhead connector as one of the “Connect Los Gatos” prioritized projects. Launched in 2019, Connect Los Gatos is a program and branding of bicycle and pedestrian projects that promotes connectivity and improvements to the multimodal network throughout the Town.

The preliminary project design was presented to the Complete Streets and Transportation Commission and to the community in February of 2020. Both groups provided input and support for the project. On March 3, 2020, the Town Council approved the preliminary design and authorized staff to proceed with the final design.

DISCUSSION:

The project is close to fully funded at this time and sources include funds from the One Bay Area Grant Program - Cycle 2 (OBAG 2), the Transportation Fund for Clean Air (TFCA) regional grant, 2016 Measure B Funds, and commitment of up to $1 million of Town local funds as approved by Council on March 1, 2022. The final distribution of funding will be presented to Council for approval once finalized within the next two months.

Following is a summary of the grant funds for construction:

Grant Program Funding Amount
One Bay Area Grant Cycle 2 (OBAG 2) $3,351,000
2016 Measure B $693,500
Transportation Fund for Clean Air $755,921
Total $4,800,421
Subsequently, the Town’s FY 2022/23 Capital Budget included an allocation of Town General Fund Appropriated Reserve (GFAR) funding in the amount of $928,687 to provide the balance of construction budget needed and the local matching funds necessary for the proposed grants, bringing the total construction budget to $5,728,687.

The project design and environmental clearances have been completed, and staff is currently working with California Department of Transportation (Caltrans) to obtain the approvals and permits necessary to allow the project to move forward to construction. Staff will be

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SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832-4505) DATE: November 1, 2022
DISCUSSION (continued):
presenting the final plans and specifications to the Town Council in the near future, following the Caltrans approvals.

In order to obtain reimbursements for project construction costs for 2016 Measure B and TFCA grant funds, the Town is required to enter into funding agreements for the two grant programs.

Attachment 1 is the funding agreement with VTA for 2016 Measure B. Attachment 2 is the draft TFCA funding agreement for grant award, which was reviewed by staff but is not yet in final form for execution.

CONCLUSION:

Staff recommends that the Town Council authorize the Town Manager to execute the Measure B Funding Agreement as attached; and authorize the Town Manager to negotiate and execute the TFCA Funding Agreement in substantial compliance with the attached draft agreement.

FISCAL IMPACT:

Staff costs are tracked for all projects. Tracking of staff costs allows for accountability in the costs of the project, recovery of costs for grant funded projects, and identification of future staffing needs. This project will utilize both full-time budgeted and part-time staff. The costs for full-time staff are generally accounted for in the Department’s Operating Budget. Cost for part-time staff costs incurred will be charged to the project or be reimbursed through one of the grant programs as necessary.

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SUBJECT: Los Gatos Creek Trail to Highway 9 Trailhead Connector (CIP No. 832-4505) DATE: November 1, 2022
FISCAL IMPACT (continued):

Los Gatos Creek Trail to Highway 9 Trailhead Connector
CIP No. 832-4505
Budget Costs
OBAG 2 Grant (2017) $343,000
GFAR (Design Phase) $330,440
OBAG 2 Grant (2022) $3,351,000
2016 Measure B $693,500
TFCA Grant Funds $755,921
GFAR (Construction Phase) $928,687
Total Budget $6,402,548
Potential Additional Funding
Potential Adjustment from Available
Traffic Impact Mitigation Fund $ 64,689
Total Budget with Potential Adjustment $ 6,467,237
Mott MacDonald - Design $576,747
Part-Time Staff Cost (Design Phase) $90,000
Other Expenditures (Advertising) $490
Construction $5,800,000
Total Expenditures $6,467,237
Remaining Budget $0
ENVIRONMENTAL ASSESSMENT:

The funding action is not a project defined under CEQA, and no further action is required. This project has completed environmental studies and the CEQA/NEPA clearances have been obtained.

Attachments:

1. 2016 Measure B Funding Agreement

2. Draft TFCA Funding Agreement

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FUNDING AGREEMENT

BETWEEN

TOWN OF LOS GATOS
AND

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR
LOS GATOS CREEK TRAIL CONNECTOR TO HIGHWAY 9 PROJECT
This Agreement (“AGREEMENT”) is between the TOWN of Los Gatos(“TOWN”) and the Santa Clara Valley Transportation Authority (“VTA”) is entered into as of the last date of signature below (“EFFECTIVE DATE”). Hereinafter, TOWN and VTA may be individually referred to as “PARTY” or collectively referred to as “PARTIES”.

I. RECITALS

1. Whereas, on June 24, 2016, the VTA Board of Directors adopted a resolution to place a ballot measure before the voters of Santa Clara County in November 2016 to authorize a one-half of one percent retail transaction and use tax (“2016 MEASURE B”) for 30 years for nine transportationrelated program categories;

2. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE B for 30 years to pay for the nine transportation-related program categories;

3. Whereas, the duration of 2016 MEASURE B will be 30 years from the initial year of collection, beginning April 1, 2017, and continuing through March 31, 2047;

4. Whereas, on October 5, 2017, the VTA Board of Directors established the 2016 Measure B Program (“PROGRAM”) and adopted the 2016 MEASURE B Bicycle & Pedestrian Program Guidelines, attached as Attachment “A” (“GUIDELINES”);

5. Whereas, the PROGRAM includes a Bicycle and Pedestrian program category (“BIKE/PED CATEGORY”) to fund bicycle and pedestrian projects and educational programs;

6. Whereas, the BIKE/PED CATEGORY consists of three sub-categories, including a Capital Projects Competitive Grant Program (“BIKE/PED CAPITAL PROGRAM”);

7. Whereas, on October 3, 2019 the VTA Board of Directors adopted the BIKE/PED CAPITAL PROGRAM criteria;

8. Whereas, on December 3, 2019, VTA released the Fiscal Year 2020 (July 1, 2019 to June 30, 2020) (“FY2020”) to Fiscal Year 2030 (July 1, 2029 to June 30, 2030) (“FY2030”) BIKE/PED CAPITAL PROGRAM call for projects;

9. Whereas on June 4, 2020, the VTA Board of Directors approved the FY2020 to FY2030 10-year priority project list for the BIKE/PED CAPITAL PROGRAM;

10. Whereas, the Kennedy Road Sidewalk and Class II Bike Lanes is an eligible project on the fiscallyconstrained portion of the VTA Board of Directors-approved FY2020 to FY2030 10-year priority

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project list for the BIKE/PED CAPITAL PROGRAM, and the Los Gatos Creek Trail Connector to Highway 9 (“PROJECT”) is an eligible project on the unconstrained portion of the VTA Board of Directorsapproved FY2020 to FY2030 10-year priority project list for the BIKE/PED CAPITAL PROGRAM;

11. Whereas, on September 1, 2022, the VTA Board of Directors approved moving the PROJECT into the fiscally-constrained portion of the FY2020 to FY2030 10-year priority project list for the BIKE/PED CAPITAL PROGRAM and moved funding from the construction phase of the Kennedy Road Sidewalk and Class II Bike Lanes to the construction phase of the PROJECT; and

12. Whereas, VTA and TOWN desire to specify herein the terms and conditions under which VTA will administer the BIKE/PED CAPITAL PROGRAM funds to TOWN as directed by the VTA Board of Directors.

NOW, THEREFORE, for good and valuable consideration, the PARTIES agree as follows:

II. AGREEMENT

1. PROJECT DESCRIPTION
The PROJECT will construct new bike and pedestrian connectors to the Los Gatos Creek Trail at Highway 9. Two connectors will be constructed to allow access to the trail from both the north and south sides of Highway 9. A pedestrian and bicycle bridge crossing the creek will be constructed along the south side of Highway 9. On the north side of Highway 9, the existing unofficial path will be replaced with an ADA-accessible pedestrian path to connect Highway 9 and the Trail.

2. SCOPE OF WORK
The SCOPE OF WORK (“SOW”) for this AGREEMENT is the construction phase for the PROJECT, which includes: construction management services, construction Iispection and testing services, construction, and construction contract. A project map is included as Attachment “B”.

VTA must approve any changes to the PROJECT’s design layout, major features, and urban design elements in the SCOPE OF WORK. TOWN must inform VTA, in writing, of any desired modifications to the PROJECT including, but not limited to, changes in the PROJECT area, design, or construction.

VTA must approve such changes with written authorization from the Program Manager (“VTA PM”) or the VTA PM’s designee before TOWN may proceed. If the modifications to the PROJECT result in a change in TOTAL PROJECT COST, as described in Section 4 below, VTA’s financial contribution to the PROJECT will change pursuant to the terms in Section 5.

3. TERM OF AGREEMENT
The term of this AGREEMENT will commence on the EFFECTIVE DATE and continue through the earlier of: (i) June 30, 2025, (ii) completion of SOW, (iii) cancellation of the PROJECT, or (iv) other termination of this AGREEMENT pursuant to its terms.

4. COST OF PROJECT

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a. Total Project Cost. The total cumulative dollar amount actually incurred and expended toward the Project PROJECT by all PARTIES involved, as measured at the completion or termination of the PROJECT (“TOTAL PROJECT COST”) is $6,442,000.
b. Construction Phase Cost. The total cost of the Construction Phase SOW is estimated not to exceed $5,800,000.

5. FINANCIAL CONTRIBUTION TO COST OF SOW
a. VTA’s Financial Contribution to the SOW. VTA will contribute an amount not to exceed $693,500 of BIKE/PED CAPITAL PROGRAM funds to be used by TOWN for completion of the SOW. All funds will be available on a reimbursement basis only for ELIGIBLE COSTS (as described in Section 7 below), pursuant to this AGREEMENT. b. Additional Funds. TOWN will be solely responsible for any additional funds required to complete the SOW.
c. Scope of Work Savings. If the PROJECT is delivered under budget, VTA’s Financial contribution for the SOW will be reduced in proportion to TOWN’s Financial contribution to the overall PROJECT.

6. TOWN’S MINIMUM CONTRIBUTION TO TOTAL PROJECT COST
TOWN is solely responsible for all funds it has expended toward the PROJECT prior to the EFFECTIVE DATE. In all circumstances, regardless of the TOTAL PROJECT COST, TOWN must contribute a minimum of 30% of the TOTAL PROJECT COST.

7. ELIGIBLE COSTS
Only the PROJECT costs TOWN incurs after the EFFECTIVE DATE will be eligible for reimbursement.

VTA will only reimburse TOWN for actual costs directly related to the SOW (“ELIGIBLE COSTS”). ELIGIBLE COSTS are costs that: (i) are directly related to the SOW and administration of the Construction Phase; and (ii) were incurred in compliance with all applicable PROGRAM requirements as set forth in Section 18 below.

The following is an illustrative, but not exhaustive, list of costs that are not eligible for reimbursement:
(a) expenses for organizational functions, businesses services, and information technology; (b) Rent and utilities; and
(c) food or beverages (e.g. as part of meetings, workshops, training, or events).

8. TOWN’S ROLE
TOWN will be the sponsor and implementing agency for the Construction Phase of the PROJECT. In its

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role as sponsor and implementing agency under this AGREEMENT, TOWN must perform and/or be responsible for the following:
i. Serving as the project manager (“PM”) for the PROJECT. ii. Performing all actions necessary to procure construction services for the Construction Phase including, but not limited to, advertising the work via a public solicitation, opening bids in response to the public solicitation, awarding a contract, approving contract documents, and administering the awarded construction contract in accordance with all applicable laws, regulations, and codes including, but not limited to, the California Public Contract Code and the California Labor Code. iii. Obtaining all necessary permits for performance of the SOW. ii. Serving as the construction management team for the Construction Phase of the PROJECT.
iii. Conducting standard close-out activities for the PROJECT including, but not limited to, performing a final accounting review and reviewing all contractual requirements.

9. OTHER TOWN PROJECT MANAGEMENT DUTIES
TOWN must:
i. Submit to VTA the most current version of VTA’s 2016 MEASURE B Complete Streets Checklist for Capital Projects (as supplied by VTA to TOWN) within five (5) business days of the EFFECTIVE DATE.
ii. Submit a project management plan (“PMP”) to VTA within thirty (30) business days of the EFFECTIVE DATE. The PMP must be in writing and must include information regarding staffing plan, cost, schedule, contracting plan, and risk assessment. iii. Actively monitor actual PROJECT expenditures to ensure that the BIKE/PED CAPITAL PROGRAM funds are used to pay only for ELIGIBLE COSTS.
iv. Provide VTA with written quarterly progress updates on the PROJECT including, but not limited to, updates on PROJECT expenditures, any changes in scope or schedule, and Project status.
v. Upon request, provide VTA copies of PROJECT deliverables including, but not limited to, reports, designs, drawings, plans, specifications, schedules, and other materials related to the Construction Phase.
vi. Submit the PROJECT’s final report (“FINAL REPORT) to VTA within thirty (30) days of PROJECT’s opening to the public. This FINAL REPORT must be in writing and must include information regarding final PROJECT costs and post-construction photos along with any other information VTA may require for inclusion in the FINAL REPORT.

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vii. TOWN will make staff available to present on the PROJECT at VTA committee meetings as needed.

10. ADDITIONAL TOWN OBLIGATIONS
TOWN must:
a. Submit first request for reimbursement of ELIGIBLE COSTS from VTA within one (1) year of the EFFECTIVE DATE.
b. Submit to VTA all records including contractors’ invoices, miscellaneous invoices, and force account charges as substantiation for invoices submitted to VTA for reimbursement. c. Maintain financial records, books, documents, papers, accounting records, and other evidence pertaining to costs related to this AGREEMENT for five (5) years. TOWN shall make such records available to VTA upon VTA’s written request for review and audit purposes.

Financial audits will be performed at VTA’s sole discretion. d. Submit invoices to VTA, no more frequently than monthly, for reimbursement of ELIGIBLE COSTS with documentation. TOWN must submit an invoice for reimbursement within one year of TOWN incurring the cost (unless otherwise approved by VTA in writing).

11. VTA’S PROJECT ROLE. VTA will perform and/or be responsible for the following PROJECT oversight tasks:
a. Review the PROJECT’s Complete Streets checklist to ensure Complete Streets compliance. b. Provide technical oversight of PROJECT, including reviews of PMP and PROJECT deliverables listed in Section 9.
c. Provide oversight of delivery of the PROJECT to ensure PROJECT compliance with the GUIDELINES.

12. VTA’S OBLIGATIONS
VTA will pay TOWN’s invoices within thirty (30) calendar days of receipt provided that the invoices are for ELIGIBLE COSTS, are fully documented, and otherwise comply with the requirements of this AGREEMENT.

13. INDEMNIFICATION
Neither VTA nor any officer or employee thereof will be responsible for any damage or liability arising out of or relating to TOWN’s acts or omissions under or in connection with any work, authority, or jurisdiction associated with this AGREEMENT. Pursuant to California Government Code §895.4, TOWN must fully defend, indemnify, and hold harmless VTA from all suits or actions of every name, kind, and description arising from an injury (as defined by California Government Code §810.8) relating to TOWN’s acts or omissions under or in connection with any work,

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authority, or jurisdiction delegated to TOWN under this AGREEMENT. This provision will survive the termination or expiration of this AGREEMENT.

14. INSURANCE
At all times during this AGREEMENT, TOWN must comply with the insurance requirements and specifications of Attachment “C” to this AGREEMENT, which is incorporated by reference.

TOWN may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment “C”.

15. ADDITIONAL INSURED AND INDEMNITY PROVISION
In any agreement executed between TOWN and a third party for purposes related in any way to the subject matter of this AGREEMENT (“THIRD PARTY CONTRACT”), TOWN must require that VTA be named as: (i) an additional insured on a primary and non-contributory basis with Separation of Insureds and Waiver of Subrogation on all policies of insurance required by TOWN in the THIRD PARTY CONTRACT, except when not applicable, and (ii) an indemnified party in any indemnity provision contained in the THIRD PARTY CONTRACT. THIRD PARTY CONTRACT must contain insurance requirements with coverages at least as broad as, and limits at least as great as, the requirements of Attachment A to this AGREEMENT.

16. PUBLIC WORKS
If TOWN awards a contract to a third party for the performance of a public work (as defined in California Labor Code Section 1720 through 1720.6) (a “PUBLIC WORKS CONTRACT”) in connection with this AGREEMENT, TOWN must comply, and must require such third party to comply, with the requirements of California Labor Code Section 1720 et seq. If the PUBLIC WORKS CONTRACT is funded in whole or in part with federal funds, TOWN must also comply, and must require such third party to also comply, with the requirements of the Davis Bacon Act (40 U.S.C. Sections 3141-3144 and 3146-3148).

17. COMPLIANCE WITH APPLICABLE LAW
In execution of the PROJECT and performance of its responsibilities set forth herein, TOWN must comply with all applicable requirements of local, state, and federal law.

18. COMPLIANCE WITH 2016 MEASURE B REQUIREMENTS
In its performance under this AGREEMENT, TOWN must comply, and must ensure PROJECT compliance, with all PROGRAM requirements including, but not limited to, the GUIDELINES and VTA’s Complete Streets Reporting Requirement.

19. TERMINATION
Each of the PARTIES may at any time terminate this AGREEMENT by giving ten (10) business days' written notice of such termination to other PARTY. Notice must identify the EFFECTIVE

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DATE of such termination and must be provided in accordance with the terms and conditions of this AGREEMENT.

In the event of such termination, TOWN must submit its final invoice to VTA within thirty (30) calendar days of the EFFECTIVE DATE of termination solely for ELIGIBLE COSTS that TOWN incurred prior to termination.

20. AUDIT AND RECORDS
a. All PARTIES must maintain, and must require their contractors to maintain, in accordance with generally accepted accounting principles and practices, complete books, accounts, records and data pertaining to services performed under this AGREEMENT, including the costs of contract administration. Such documentation must be supported by properly executed payrolls, invoices, contracts, and vouchers evidencing in detail the nature and propriety of any charges and must be sufficient to allow a proper audit of services. All checks, payrolls, invoices, contracts and other accounting documents pertaining in whole or in part to the services must be clearly identified and readily accessible. b. For the duration of this AGREEMENT, and for a period of five (5) years after final payment, each PARTY must provide access to the other PARTY and its representatives during normal business hours to any books, accounts, records, data, and other relevant documents that are pertinent to this AGREEMENT for audits, examinations, excerpts, and transactions and must furnish copies upon request.

21. NOTICES
All notices required or permitted under this AGREEMENT must be in writing, will be effective five (5) days after being sent by personal service or certified mail, or forty-eight (48) hours after being sent by electronic mail to the individuals at the addresses set forth below, or to such other address that may be specified in writing by the PARTIES.

VTA:

Marcella Rensi
Deputy Director, Grants & Allocations
Santa Clara Valley Transportation Authority
3331 N First Street
San Jose, CA 95134
Email: [email protected]
TOWN:

Parks and Public Works Director
TOWN of Los Gatos
41 Miles Avenue
Los Gatos, CA, 95030
Email: [email protected]
Written notification to the other PARTY must be provided, in advance, for changes in the name or address of the individuals identified above.

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22. GENERAL TERMS AND CONDITIONS
a. Headings. The subject headings of the articles and paragraphs in this AGREEMENT are included for convenience only and will not affect the construction or interpretation of any of its provisions.
b. Construction and Interpretation of AGREEMENT. This AGREEMENT, and each of its provisions, terms and conditions, has been reached as a result of negotiations between the PARTIES. Accordingly, each PARTY expressly acknowledges and agrees that (i) this AGREEMENT will not be deemed to have been authored, prepared, or drafted by any particular PARTY and (ii) the rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this AGREEMENT or in the resolution of disputes.
c. Amendment. No alteration or variation of the terms of this AGREEMENT will be valid unless made in writing and signed by both PARTIES, and no oral understanding or agreement not incorporated herein will be binding on either of the PARTIES. d. Entire AGREEMENT. This AGREEMENT contains the entire understanding between VTA and TOWN relating to the subject matter hereof. This AGREEMENT supersedes any and all other agreements that may have existed between the PARTIES, whether oral or written, relating to the subject matter hereof. This AGREEMENT is binding upon each PARTY and itssuccessors and assigns for the duration of the AGREEMENT.
e. Representation of Authority. Each PARTY represents and warrants that the person whose signature appears on this AGREEMENT for such PARTY has been duly authorized and has the full authority to execute this AGREEMENT.
f. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms, covenants, and conditions of this AGREEMENT will not be deemed a waiver of any right or remedy that either PARTY may have, and will not be deemed a waiver of either PARTY’s right to require strict performance of all of the terms, covenants, and conditions hereunder.
g. Dispute Resolution. If a question or allegation arises regarding (i) interpretation of this AGREEMENT or its performance, or (ii) the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the other PARTY. The PARTIES must promptly meet in an effort to resolve the issues raised. If the PARTIES fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the PARTIES to avoid litigation as a method of dispute resolution to the greatest extent possible. h. Severability. If any of the provisions of this AGREEMENT (or portions or applications thereof) are held to be unenforceable or invalid by any court of competent jurisdiction, VTA and TOWN will negotiate an equitable adjustment in the provisions of this AGREEMENT with a view toward effecting the purpose of this AGREEMENT, and the validity and enforceability of the remaining provisions or portions or applications thereof will not be affected thereby.

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i. Governing Law. The laws of the State of California will govern this AGREEMENT and any claim that might arise between TOWN and VTA without regard to conflict of law provisions. j. Venue. Any lawsuit or legal action arising from this AGREEMENT must be commenced and prosecuted in the courts of Santa Clara County, California. TOWN agrees to submit to the personal jurisdiction of the courts located in Santa Clara County, California for the purpose of litigating all such claims.
k. Ownership of Work. All reports, designs, drawings, plans, specifications, schedules, studies, memoranda, and other documents: (i) assembled for; (ii) prepared by or for; (iii) in the process of being assembled or prepared by or for; or (iv) furnished to VTA or TOWN under this AGREEMENT are the joint property of all PARTIES. Each PARTY is entitled to copies and access to these materials during the progress of the PROJECT and upon completion of the PROJECT or termination of this AGREEMENT. All PARTIES may retain a copy of all material produced under this AGREEMENT for use in their general activities. l. Attribution to VTA. TOWN must include attribution to VTA that indicates part of the work was funded by Program Funds. This provision applies to any project or publication that was funded in part or in whole by Program Funds. Acceptable forms of attribution include 2016 MEASURE B’s branding on PROJECT-related documents, construction signs, public information materials, and any other applicable documents. VTA will provide Program branding to TOWN.
m. Non-discrimination. The PARTIES and any contractors performing services on behalf of the PARTIES (“CONTRACTORS”) will not unlawfully discriminate or permit discrimination, harass, or allow harassment against any person or group of persons because of race, color, religious creed, national origin, ancestry, age (over 40), sex, gender, gender identity, gender expression, sexual orientation, marital status, pregnancy or childbirth (including related conditions), medical condition (including cancer), mental disability, physical disability (including HIV and AIDS), genetic information, or military and veteran’s status, or in any manner prohibited by federal, state, or local laws. In addition, the PARTIES and CONTRACTORS must not unlawfully deny any of their employees family care leave or discriminate against such employees on the basis of having to use family care leave. The PARTIES and CONTRACTORS must ensure that the evaluation and treatment of their employees and applicants for employment is free of such discrimination and harassment. n. Relationship of the PARTIES. It is understood that this is an AGREEMENT by and between independent parties and does not create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship other than that of independent contractor.
o. Execution in Counterparts / Electronic Signature. This AGREEMENT may be executed in any number of counterparts and by each Paty in separate counterparts, each of which when so executed and delivered will be deemed to be an original and all of which taken together will constitute one and the same instrument.

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Unless otherwise prohibited by law, VTA policy, or TOWN policy, the PARTIES agree that both an electronic copy of a signed contract and an electronically signed contract have the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by each of the PARTIES.

Signatures of PARTIES on the following page.

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IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT as of the last date set forth below.

Santa Clara Valley Town of Los Gatos
Transportation Authority
Carolyn M. Gonot Laurel Prevetti
General Manager/CEO Town Manager
Date Date
Approved as to Form: Approved as to Form:

Shannon Smyth-Mendoza
Deputy General Counsel
Gabrielle Whelan
Town Attorney
Date Date
Recommended by:

Nicolle Burnham
Director of Parks and Public Works
Attest:

Wendy Wood
Town Clerk

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ATTACHMENT A
Maps provided by the Town will be inserted in the final PDF here.

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ATTACHMENT B
2016 Measure B Bicycle & Pedestrian Program Guidelines
[Revised and approved by VTA Board of Directors: August 4, 2022] To fund bicycle and pedestrian projects of countywide significance identified by the cities, County and VTA. The program will give priority to those projects that connect to schools, transit and employment centers; fill gaps in the existing bike and pedestrian network; safely cross barriers to mobility; and make walking or biking a safer and more convenient means of transportation for all county residents and visitors. Bicycle and pedestrian educational programs such as Safe Routes to Schools, will be eligible for funding.

Total Funding

3.97% of Program Tax Revenues
Program Type
Formula-based program
Distribution of Funds
 Funds will be allocated on a two-year cycle, in conjunction with the VTA Biennial Budget process.
 Funds are allocated on an annual basis, based on the application of the ballotestablished ratio to the estimated Program Tax Revenue. The allocations are calculated in two steps:
 Multiplying the ballot-established ratio by the projected Program Tax Revenues for that fiscal year.
 Reconciling prior allocations, which were based on estimated Program Tax Revenues, with actual Program Tax Revenues (referred to as a “true-up process”). This true-up process will occur in the first fiscal year of each biennial budget cycle.  The program will consist of three sub-categories: Education & Encouragement Programs, Planning Studies, and Capital Projects.
 A minimum of 80% of available program category funds will be allocated to Capital Projects.
 A maximum of 15% of available program category funds will be set aside for Education & Encouragement. The funds will be allocated as follows:
o 25% for countywide (including targeting unincorporated areas) education & encouragement programs
o Remaining funds allocated by city population formula with a $10,000 annual minimum allocation per city
 A maximum of 5% of available program category funds will be allocated to Planning Studies.
 If the Planning Studies or Capital Projects competitive grant cycle is not fully awarded, the balance of funds from that cycle will roll into its next call for projects cycle.

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Implementation
 Only projects currently listed on Attachment A of 2016 Measure B are eligible.  Education & Encouragement (Formula Distribution)
 VTA and individual agencies will enter into a Master Agreement for Education & Encouragement funds.
 The 2016 Measure B Program Office will notify agency of allocation for twoyear cycle.  Funds will be distributed on a reimbursable basis.
 Agency will submit annual education & encouragement work program and annual progress report.
 Education & Encouragement funds may be banked for a maximum of three years with explanation of banking purposes upon approval by the 2016 Measure B Program Office.
 The 2016 Measure B Program Office will conduct an assessment regarding the effectiveness of the program.
 Capital Projects & Planning Studies (Competitive Grants)  Only a public agency can serve as a project sponsor. Other entities must partner with a public agency to apply for a grant.
 The grant program contains two categories:
o Capital projects
 Activities leading to/including:
 Environmental Clearance
 Design
 Right of Way
 Construction
 Construction grant requests must include cost estimates supported by 30% to 35% design.
o Planning studies
 Includes planning studies to support capital project development for those projects currently listed on Attachment A of 2016 Measure B. It does not include general/master planning efforts.
 The minimum grant award is $50,000.
 The maximum grant award per sponsoring agency can be no more than 50% of the total available funds per call for projects per cycle, unless the cycle is undersubscribed.
 The 2016 Measure B Program Office developed project criteria in conjunction with the VTA Technical Advisory Committee (TAC) Capital Improvement Program Working

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Group and incorporated input from the TAC and Bicycle & Pedestrian Advisory Committee (BPAC).
 Scoring committees for the grant programs will be comprised of three BPAC members, three Member Agency staff, and one VTA staff person. If enough BPAC or Member Agency staff are not available as described above, Board-adopted scoring committee policy will be followed.

Criteria
 Capital Projects and Planning Studies will be scored on criteria that supports the language in 2016 Measure B, including but not limited to:
o Countywide significance
o Connection to/serves schools, transit, or employment centers o Fills gaps in bicycle/pedestrian network
o Provides safer crossings of barriers
o Makes walking or biking safer
o Makes walking or biking more convenient
o Other criteria to consider:
 Safety benefits
 Increase in bicycle and pedestrian usage
 Community support
 Project readiness
 Projects serve Equity Priority Communities or vulnerable populations with specific needs
 Non-2016 Measure B contribution
Requirements
 Competitive grant projects require a minimum 10% non-2016 Measure B contribution.  Reporting requirements will be detailed in agreements executed with VTA for project funding.
 VTA Complete Streets reporting requirements are required for Planning Studies and Capital Projects.
 All projects must comply with 2016 Measure B program oversight requirements.  All collateral material must comply with 2016 Measure B branding requirements.

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ATTACHMENT C
Insurance Requirements
TOWN OF LOS GATOS’S (“TOWN”) ATTENTION IS DIRECTED TO THE INSURANCE REQUIREMENTS BELOW. IT IS HIGHLY RECOMMENDED THAT TOWN CONFER WITH THEIR INSURANCE CARRIERS OR

BROKERS TO DETERMINE THE AVAILABILITY OF INSURANCE CERTIFICATES AND ENDORSEMENTS REQUIRED BY THIS AGREEMENT.

INSURANCE
Without limiting TOWN’s indemnification and defense of claims obligations to VTA, TOWN must procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property which may arise under or in connection with any work, authority, or jurisdiction associated with the AGREEMENT. The cost of such insurance must be borne by TOWN.

TOWN must furnish complete copies of all insurance policies within three (3) business days of any request for such by VTA.

A. MINIMUM SCOPE OF INSURANCE
Coverage must be at least as broad as:

1. Insurance Services Office General Liability coverage (“occurrence” form CG 0001). General Liability insurance written on a “claims made” basis is not acceptable.

2. Business Auto Coverage, Insurance Services Office form number CA 0001, covering Automobile Liability, code 1 “any auto.” Auto Liability written on a “claims-made” basis is not acceptable.

3. Workers’ Compensation insurance as required by the Labor Code of the State of California and Employer’s Liability insurance.

4. Contractor’s Pollution Liability: covering liability arising out of the treatment, handling, storage, transportation, or accidental release of any hazardous material.

5. Professional Liability, including limited contractual liability coverage, covering liability arising out of any negligent act, error, mistake or omission in the performance of Contractor’s services under this AGREEMENT. This coverage must be continuously maintained for a minimum of two (2) years following completion of this AGREEMENT. This coverage may be written on a claims-made basis; if so, see special provisions in Section B.

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B. MINIMUM LIMITS OF INSURANCE
a. TOWN must maintain limits no less than:

1. General Liability: $5,000,000 limit per occurrence for bodily injury, personal injury, and property damage. If General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. This requirement may be satisfied by a combination of General Liability with Excess or Umbrella, but in no event may the underlying General Liability policy limit be less than $2,000,000, unless Umbrella/Excess or Umbrella policies feature inception and expiration dates concurrent with the underlying general liability policy, “Follow Form” coverage, and a “Drop Down” provision. The Certificate of Insurance must specifically state that the Excess or Umbrella insurance has scheduled the General Liability as underlying insurance.

2. Automobile Liability (including umbrella/excess liability): $2,000,000 limit per accident for bodily injury and property damage. This requirement may be satisfied by a combination of Automobile Liability with excess or Umbrella, but in no event may the underlying Auto Liability policy limit be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying auto liability policy, “Follow Form” coverage, and a “Drop Down” provision. The Certificate of Insurance must specifically state that the Excess or Umbrella insurance has scheduled the General Liability as underlying insurance.

3. Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of California and Employer’s Liability limits of $1,000,000 per accident.

4. Contractor’s Pollution Liability: $3,000,000 per occurrence. This requirement may be satisfied by a combination of Pollution Liability with Excess or Umbrella.

Umbrella/Excess policies must feature inception and expiration dates concurrent with the underlying pollution policy, “Follow Form” coverage, and a “Drop Down” provision.

The Certificate of Insurance must specifically state that the Excess or Umbrella insurance has scheduled the Pollution Liability as underlying insurance.

5. Professional Liability: $2,000,000 each occurrence/aggregate minimum limit per claim.

This requirement may be satisfied by a combination of Professional Liability insurance with Excess or Umbrella policies, but in no event may the Professional Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision. The Certificate of Insurance must specifically state that the Excess or Umbrella insurance has scheduled the Professional Liability as underlying insurance.

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b. Notwithstanding any language in this AGREEMENT to the contrary, if TOWN carries insurance limits exceeding the minima stated in Section B(a)(1)-(3) immediately above, such greater limits will apply to this AGREEMENT.

C. SELF-INSURED RETENTION
The certificate of insurance must disclose the actual amount of any deductible or self-insured retention, or lack thereof, for all coverages required herein. Any self-insured retention or deductible in excess of $250,000 must be declared to and approved by VTA. If TOWN is a governmental authority such as a state, municipality or special district, self-insurance is permitted. To apply for approval for a level of retention or deductible in excess of $250,000, TOWN must provide a current financial report including balance sheets and income statements for the past three years, so that VTA can assess TOWN’s ability to pay claims falling within the self-insured retention or deductible. Upon review of the financial report, if deemed necessary by VTA in its sole discretion, VTA may elect one of the following options: to accept the existing selfinsured retention or deductible; require the insurer to reduce or eliminate the self-insured retention or deductible as respects VTA, its directors, officers, officials, employees and volunteers; or to require TOWN to procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Applicable costs resulting therefrom will be borne solely by TOWN. TOWN may request execution of a nondisclosure agreement prior to submission of financial reports.

D. CLAIMS MADE PROVISIONS (NOT APPLICABLE TO GENERAL LIABILITY OR AUTO LIABILITY) Claims-made coverage is never acceptable for General Liability or Auto Liability. Claims-made may be considered for Professional, Environmental/Pollution, or Cyber Liability. If coverage is written on a claims-made basis, the Certificate of Insurance must clearly state so. In addition to all other coverage requirements, such policy must comply with the following:

1. The policy retroactive date must be no later than the date of this AGREEMENT.

2. If any policy is not renewed or the retroactive date of such policy is to be changed, TOWN must obtain or cause to be obtained the broadest extended reporting period coverage available in the commercial insurance market. This extended reporting provision must cover at least two (2) years.

3. No prior acts exclusion may be added to the policy during the AGREEMENT period.

4. The policy must allow for reporting of circumstances or incidents that might give rise to future claims.

E. OTHER INSURANCE PROVISIONS

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The policies must contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability
a. VTA, its directors, officers, officials, employees, and volunteers must be named as additional insureds as respects: liability arising under or in connection with any work, authority, or jurisdiction associated with the AGREEMENT. The coverage must contain no special limitations on the scope of protection afforded to VTA, its directors, officers, officials, employees, or volunteers. Additional Insured endorsements must provide coverage at least as broad as afforded by the combination of ISO CG 20 10 10 01 and CG 20 37 10 01.
b. Any failure to comply with reporting provisions of the policies may not affect coverage provided to VTA, its directors, officers, officials, employees, or volunteers. c. Coverage must state that TOWN’s insurance applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
d. The General Liability General Aggregate limit must apply per project, not per policy.

2. All Coverages
a. TOWN must agree to waive all rights of subrogation against VTA, its directors, officers, officials, employees, and volunteers for losses arising under or in connection with any work, authority, or jurisdiction associated with the AGREEMENT. b. TOWN’s insurance coverage must be primary insurance as respects VTA, its directors, officers, officials, employees, and volunteers. Self-insurance or insurance that may be maintained by VTA, its directors, officers, officials, employees, or volunteers may apply only as excess to TOWN’s insurance. TOWN’s insurance must not seek contribution from VTA’s insurance program.

3. Other Insurance Provisions
a. The Certificate must disclose the actual amount of the Deductible or Self-Insured Retention.
b. If any coverage forms or endorsements required by this AGREEMENT are updated by their publishers, whether they be the insurance carrier(s), the Insurance Services office,

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or the American Association of Insurance Services, during the duration of this AGREEMENT, VTA reserves the rights to require TOWN to procure said coverage forms or endorsements using the updated versions upon the next renewal cycle.

F. ACCEPTABILITY OF INSURERS
Insurance must be placed with insurers with an A.M. Best’s rating of no less than A VII (financial strength rating of no less than A and financial size category of no less than VII), unless specific prior written approval has been granted by VTA.

G. CERTIFICATES OF INSURANCE
TOWN must furnish VTA with a Certificate of Insurance. The certificates for each insurance policy are to be signed by an authorized representative of that insurer. The certificates must be issued on a standard ACORD Form. TOWN must instruct their insurance broker/agent to submit all insurance certificates and required notices electronically in PDF format to [email protected]. All endorsements must be attached to the ACORD certificate in a single PDF document.

The certificates must (1) identify the insurers, the types of insurance, the insurance limits, the deductibles, and the policy term, (2) include copies of all the actual policy endorsements required herein, and (3) in the “Certificate Holder” box include:

Santa Clara Valley Transportation Authority (“VTA”)
3331 North First Street
Los Gatos, CA 95134-1906
In the Description of Operations/Locations/Vehicles/Special Items Box, the VTA property leased must appear, the list of policies scheduled as underlying on the Umbrella/Excess policy must be listed, Certificate Holder must be named as additional insured, and Waiver of Subrogation must be indicated as endorsed to all policies as stated in the AGREEMENT documents.

It is a condition precedent to granting of this AGREEMENT that all insurance certificates and endorsements be received and approved by VTA before AGREEMENT execution. No occupancy may be taken until insurance is in full compliance. VTA reserves the rights to require complete, certified copies of all required insurance policies, at any time.

If TOWN receives notice that any of the insurance policies required by this Attachment may be cancelled or coverage reduced for any reason whatsoever, TOWN must immediately provide written notice to VTA that such insurance policy required by this Attachment is canceled or coverage is reduced.

H. MAINTENANCE OF INSURANCE
If TOWN fails to maintain insurance as required herein, VTA, at its option, may suspend the

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AGREEMENT until a new policy of insurance is in effect.

ATTACHMENT 2

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY

CONGESTION MANAGEMENT PROGRAM

TRANSPORTATION FUND FOR CLEAN AIR

AGREEMENT
FY 2022/23
This agreement (“Agreement”) by and between the Santa Clara Valley Transportation Authority (“VTA”) and the Town of Los Gatos (“Sponsor”) shall be effective retroactively beginning on July 1, 2022 (“Effective Date”). Hereinafter, Sponsor and VTA may be individually referred to as a “PARTY” or collectively referred to as the “PARTIES”.

RECITALS
This Agreement is made with reference to the following facts:

A. VTA has been designated, by resolutions of the County of Santa Clara and a majority of the cities therein, as the Program Manager for Santa Clara County’s Transportation Fund for Clean Air (“TFCA”) funds under the State of California Health and Safety Code Section 44241.

B. Pursuant to that designation, VTA is responsible for allocating and administering the County of Santa Clara’s TFCA County Program Manager (“CPM”) Fund to eligible project sponsors in accordance with the State of California Health and Safety Code Sections 44241 and 44242 and VTA’s current agreement with the Bay Area Air Quality Management District (“Air District”).

C. On September 1, 2022, the VTA Board approved the programming of Fiscal Year (“FY”) 2022/23 TFCA CPM funds for the Los Gatos Creek Trial Connector (“Project”).

D. This Agreement specifies the conditions under which VTA will allocate and administer a grant(s) from the TFCA CPM Fund to Sponsor for FY 2022/23.

Now, therefore the Parties agree as follows:

AGREEMENT
Section 1. Grant of TFCA Funds; Description of Projects A. Subject to appropriation and receipt of TFCA funds (as further set forth in Section 10, below), VTA hereby agrees to allocate to Sponsor a TFCA grant in an amount not to exceed $755,921 (the “Grant Funds”) in consideration for Sponsor’s agreement to implement and complete the Project(s), as further set forth in the Project Summary(ies) attached hereto as Attachment A, in accordance with the terms and conditions set forth in this Agreement.

B. In consideration of VTA providing Sponsor with the Grant Funds, Sponsor hereby agrees to implement and complete the Project(s) in conformance with the terms of this Agreement. In implementing the Project(s), Sponsor shall comply with reporting requirements as described in Section 13.

ATTACHMENT 2
Section 2. Proper Expenditure; Return of Funds
A. Sponsor must assure that all Grant Funds received under this Agreement are expended only in accordance with all applicable provisions of federal, state, and local laws, and Sponsor shall require any other sub-recipients of Grant Funds for the Project(s) to do the same.

B. Sponsor must comply with all TFCA program requirements, as set forth in the Air District’s County Program Manager Fund Expenditure Plan Guidance Fiscal Year Ending (FYE) 2023 and the Funding Agreement between VTA and the Air District (23-SC). These documents, including appendices and revisions, are incorporated herein and made a part hereof by this reference as if fully set forth herein and will be provided by VTA to Sponsor upon request.

C. Since the Air District mandates that all TFCA Funds that are not expended in accordance with applicable provisions of law must be returned, Sponsor must reimburse VTA all Grant Funds that are not expended in accordance with the terms and conditions of this Agreement and/or applicable provisions of law upon notification.

D. Sponsor must also return the Grant Funds to VTA if the Project(s) are not maintained and/or operated throughout and until the conclusion of the years of effectiveness (“Years of Effectiveness”). This is the default value stated in the Air District’s County Program Manager Fund Expenditure Plan Guidance Fiscal Year Ending 2023 for the applicable project type, unless a different value was approved by the Air District and shown to yield a project that meets the cost-effectiveness requirement specified in the TFCA Guidance document cited above. The amount of Grant Funds returned to the Program Manager must be calculated on a prorated basis based on the length of a project’s Years of Effectiveness.

Section 3. Administrative project costs
Administrative project costs are costs associated with the administration of a TFCA project, and do not include capital or operating costs. Sponsor must expend no more than six and a quarter percent (6.25%) of Grant Funds received hereunder on administrative costs.

Hourly labor charges for administrative project costs must be expressed based on hours worked on the TFCA project. Administrative project costs are limited to the following activities that have documented hourly labor and overhead:

A. Costs associated with administering the TFCA Funding Agreement (e.g., responding to requests for information from Air District and processing amendments). Costs incurred in preparation of a TFCA application or costs incurred prior to the execution of the Funding Agreement are not eligible for reimbursement;
B. Accounting for TFCA funds;
C. Fulfilling all monitoring, reporting, and record-keeping requirements specified in the TFCA Funding Agreement, including the preparation of reports, invoices, and final reports; and D. Documenting indirect administrative costs associated with administrating the Project(s), including reasonable overhead costs of utilities, office supplies, reproduction, and managerial oversight.

The costs to prepare proposals and/or grant applications are not eligible.

ATTACHMENT 2
If Sponsor requests reimbursement of administrative project costs, Sponsor must document and explain all such expenses in its invoices. Additionally, Sponsor must track these expenses to ensure that they do not exceed 6.25% of total TFCA funds received and provide auditable documentation to VTA. Upon notice, Sponsor must reimburse VTA for any administrative project costs deemed ineligible and returned by VTA to the Air District.

Section 4. Term
A. The term of this Agreement is retroactive beginning on July 1, 2022, until either the Project(s) are completed or terminated in accordance with Section 16C, but no later than June 30, 2024, without written approval as described below.

B. The Grant Funds must be expended within two (2) years of receipt of the first transfer of funds from the Air District to the VTA in the applicable fiscal year, unless one of the following applies:
a. Multi-Year Funded Project: If VTA requests multi-year funding in compliance with the Guidance; and the Air District approves the request for multi-year funding. b. Extensions of Expenditure Deadline: If VTA finds that a project will take a longer period of time to implement or that significant progress has been made on a project, then VTA can approve no more than two one‐year schedule extensions for a project, as memorialized in writing by VTA. Any subsequent schedule extensions for projects may be given on a case‐by‐case basis only by written amendment to this Agreement, if the Air District finds that significant progress has been made on a project, and the Funding Agreement is amended to reflect the revised schedule.

C. In addition to the specific term of this Agreement, Sponsor must maintain each Project for the Years of Effectiveness prescribed in Section 2D herein.

Section 5. Work Product
Sponsor must place in the public domain any software, written document, or other product developed with funds received through this Agreement, to the extent not otherwise prohibited by law, and to the extent required by the California Public Records Act (California Government Code Sections 6250 et seq.).

Section 6. Acknowledgement of Funding Sources
A. Sponsor must acknowledge both VTA and Air District as funding sources during the implementation of the Project(s) and must use the VTA and the Air District approved logos as specified below:
(1) The logos must be used on signs posted at the site of any project construction; (2) The logos must be displayed on any vehicles or equipment operated with or obtained as part of the Project(s);

ATTACHMENT 2
(3) The logos must be used on any material intended for public consumption associated with the Project(s), such as websites and printed materials, including transit schedules, brochures, handbooks, maps created for public distribution, and promotional material; and (4) Sponsor will demonstrate to VTA, through evidence such as photographs of vehicles, equipment, construction signs, and copies of press releases, that the logos are used and displayed as required by this Section.

B. VTA will provide a copy of Air District and VTA logos to Sponsor for use in fulfilling Sponsor’s obligations under this Section.

C. Sponsor must acknowledge VTA and Air District as a funding source in any related articles, news releases, or other publicity materials for the Project(s) that are produced or caused to be produced by Sponsor.

Section 7. Indemnity and Insurance Requirements
A. Sponsor must indemnify, defend, and hold harmless VTA, the Air District, their respective officers, agents, employees, representatives, and successors-in-interest from any claim, liability, loss, expense, including reasonable attorneys’ fees, and/ or claims for injury or damage arising out of, or in connection with, performance of this Agreement by Sponsor and/or its agents or employees or subcontractors, excepting only loss, injury or damage caused by the gross negligence or willful misconduct of personnel employed by VTA.

B. Sponsor must adhere, throughout the term of this Agreement, to the insurance requirements specified in Attachment B “Insurance Requirements”, which are hereby incorporated by reference. In any agreement between Sponsor and a third party for purposes related in any way to the subject matter of this Agreement (“Third Party Contract”), Sponsor must require that VTA be named as (i) additional insured on all policies of insurance required by CITY in the Third-Party Contract and (ii) indemnified party in any indemnity provision contained in the Third-Party Contract. Such Third-Party Contracts must contain requirements for General Liability, Automobile Liability, Workers’ Compensation and Employer’s Liability, and Pollution Liability.

Section 8. Invoicing
Sponsor must submit invoices at quarterly intervals to VTA for reimbursement of costs incurred to implement the Project(s). Sponsor must email requests for reimbursement to VTA Accounts Payable at [email protected]. Sponsor must include relevant, auditable back-up documentation (time sheets, bills, etc.) with each invoice.

Section 9. Reimbursement
A. All funds allocated by VTA to Sponsor will be paid on a cost-reimbursement basis only. VTA will pay no funds in advance.

B. Upon review and approval of invoices and documentation, VTA will, within fifteen (15) days of receipt of an invoice that conforms to the requirements set forth in this Agreement, reimburse Sponsor for all eligible expenditures up to the maximum amount described in Section 1 of this Agreement. Only those expenses incurred by Sponsor on or after July 1, 2022, will be considered reimbursable expenditures.

ATTACHMENT 2
C. Funds for the Projects described in this Agreement, which are not submitted for reimbursement prior to June 30, 2024, will not be available to reimburse Project costs unless a Project schedule, which extends the Project completion date beyond June 30, 2024, has been approved by VTA or the Air District, as set forth in Section 4B, above.

Section 10. Funds Subject to Appropriation/Allocation of Funds Contingent on Appropriation
VTA’s obligations under the terms of this Agreement are contingent upon and subject to the allocation of TFCA funds to VTA by the Air District under VTA’s “23-SC” agreement with the Air District for approved projects during Fiscal Year 2022/23.

Section 11. Audit
This Agreement is subject to the examination and audit of the California State Auditor pursuant to California Government Code Section 8546.7 for a period of five (5) years after each Project(s) Years of Effectiveness. Audits may also be conducted by an auditor chosen by the Air District or VTA.

Section 12. Sponsor’s Record Keeping
Sponsor must:

A. Allow VTA and Air District staff, authorized representatives, and independent auditors, during the term of this Agreement and for five (5) years from the end of each Project(s) Years of Effectiveness, to conduct performance and financial audits and to inspect the Project(s). During audits, Sponsor must make available to the auditor, in a timely manner, all records relating to Sponsor’s implementation of the Project(s). During inspections, Sponsor will provide, at the request of VTA or the Air District, access to inspect the Project(s) and related records.

B. Maintain employee time sheets documenting those hourly labor costs incurred in the implementation of the Project(s), including both administrative and implementation costs, or to establish an alternative method to document staff costs charged to the Project(s).

C. Keep all financial and implementation records necessary to demonstrate compliance with this Agreement and the TFCA Program. Such records must include documentation that demonstrates significant progress made for those Project(s) seeking extensions to the completion date. Sponsor must keep such documents in a central location for a period of five (5) years from the end of each Project’s Years of Effectiveness.

Section 13. Reporting Requirements.

A. Sponsor must submit an interim project report to VTA in each May and October until the Project(s) is/are completed, and all closeout requirements have been fulfilled. The interim report must utilize Air District-approved report forms. One form should be submitted for each

ATTACHMENT 2
Project listed in Attachment A. VTA will supply the Interim Project Report form to Sponsor for this requirement.

B. Sponsor must submit a Final Report for each completed Project on the Air District-approved report form appropriate for the specific project type. Sponsor must also submit a post‐project Cost-Effectiveness spreadsheet. Post‐project evaluations should be completed using the version of the Cost‐Effectiveness worksheet for the year the purchased, installed, or constructed project became available for use by the public. VTA will provide the Final Report Forms and spreadsheets for this requirement.

Section 14. Review
A. VTA will review Sponsor’s progress in implementing the Project(s) at the end of the sixth (6th) quarter following execution of this Agreement. If progress at the sixth (6th) quarter review is insufficient to implement any Project or to expend the funds within the period described in Section 4, VTA will develop an action plan with Sponsor to ensure that the Grant Funds are not required to be repaid to VTA and/or the Air District. The action plan may include reprogramming funds to other projects within Santa Clara County to ensure their expenditure prior to the term expiration date described in Section 4.

Section 15. Non-Performance
A. If Sponsor causes all or part of these Grant Funds to be subject to repayment to the CPM Fund because of failure to complete the Project(s) according to the work scope described in Attachment A, Sponsor’s next grant allocation of any kind that is from or passes through VTA may be reduced by the amount that VTA repaid to the CPM Fund.

Section 16. General Terms and Conditions
A. Notices. Any notice required to be given by either Party, or which either Party may wish to give, must be in writing and served either by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows:

To VTA: Santa Clara Valley Transportation Authority
Chief Planning & Programming Officer
3331 North 1st Street
San José, CA 95134-1906
To SPONSOR: Town of Los Gatos
Parks and Public Works Department
41 Miles Avenue
Los Gatos, CA 95030
B. Program Liaison. Within thirty (30) days from the Effective Date of this Agreement, Sponsor must notify VTA of Sponsor’s “Program Liaison” and provide the Program Liaison’s address, telephone number, and email address. The Program Liaison must be the contact to VTA pertaining to implementation of this Agreement and for information about the Project(s).

Sponsor must notify VTA of the change of Program Liaison or of the Program Liaison’s contact information in writing no later than thirty (30) days from the date of any change.

C. Termination.

ATTACHMENT 2
Voluntary. Either Party may terminate this Agreement and/or a Project at any time by giving written notice of termination to the other Party which must specify the effective date thereof.

Notice of termination under this paragraph must be given at least ninety (90) days before the effective date of such termination unless the Parties mutually agree to an earlier termination date.

This Agreement will also terminate at the end of the fiscal year during which VTA loses its designation as County Program Manager for Santa Clara County.

If VTA terminates this Agreement and/or a Project pursuant to this provision, the Sponsor must cease all work under this Agreement and cease further expenditures of Grant Funds received under this Agreement for the terminated Project immediately upon receipt of the notice of termination, excepting any work permitted to continue that is specified in the notice of termination. VTA will review the project to determine if it will still reduce emissions, and if it does, VTA may reimburse Sponsor for eligible funds and no further Grant Funds will be provided for that Project.

If Sponsor terminates this Agreement and/or a Project pursuant to this provision, the Sponsor must return all Grant Funds provided by VTA for the specific Project up to and including the date of termination.

After Breach. VTA may terminate this Agreement and/or a Project for breach. Upon any breach, VTA will deliver a written notice of termination for breach to Sponsor that specifies the date of termination, which will be no less than ten (10) business days from delivery of such notice and will provide the Sponsor an opportunity to contest such breach within that period of time. If Sponsor contests the notice of termination for breach, VTA will provide written notice of VTA’s determination of Sponsor’s contestation. If VTA upholds the termination for breach, the written notice will specify the effective date of termination and Sponsor will have ten (10) business days to cure. If the breach is not cured within the allotted time, the Agreement will automatically terminate. The notice of termination will specify the Total Grant Funds VTA has paid to the Sponsor, which Sponsor must reimburse to the VTA within thirty (30) days of the effective date of termination.

D. Non-Waiver. The failure of either party to insist upon the strict performance of any of the terms, covenants, and conditions of this Agreement will not be deemed a waiver of any right or remedy that either party may have and will not be deemed a waiver of their right to require strict performance of all of the terms, covenants, and conditions thereafter.

E. Assignment: Sponsor must not assign, sell, license, or otherwise transfer any rights or obligations under this Agreement without the prior written consent of VTA.

F. Integration. This Agreement, including all attachments and references, constitutes the entire Agreement between the Parties pertaining to the subject matter contained herein and supersedes all prior or contemporaneous agreements, representations, and understandings of the Parties relative thereto.

G. Amendments. Future amendments and modifications to this Agreement must be made in writing and signed by both parties.

H. Attachments. Each attachment hereto is incorporated into this Agreement as if fully set forth herein.

I. Severability. If any term, covenant, condition, or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of

ATTACHMENT 2
competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, covenants, conditions, and provisions of this Agreement, or the application thereof to any person or circumstance, must remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

J. Warranty of Authority to Execute Agreement. Each Party to this Agreement represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this Agreement on behalf of the entity that is a Party to this Agreement.

K. Survival. Any provision that, by its nature, extends beyond the term or termination of this Agreement will survive the expiration or termination of this Agreement.

ATTACHMENT 2
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date shown below.

Town of Los Gatos Santa Clara Valley Transportation Authority (Sponsor) (VTA)
Dated: ____________________________ Dated: _____________________________ __________________________________ ___________________________________ Laurel Prevetti Carolyn Gonot
Town Manager General Manager and CEO
sponsor VTA
Approved as to Form: Approved as to Form:
_________________________________ _________________________________ Gabrielle Whelan Jennifer Pousho
Town Attorney
Sr. Assistant Counsel
Recommended by:
_________________________________
Nicolle Burnham
Director of Parks and Public Works
Attest:
_________________________________
Wendy Wood
Town Clerk

ATTACHMENT A: PROJECT INFORMATION SUMMARY
To be added after template approval
.

ATTACHMENT B

INSURANCE REQUIREMENTS

INSURANCE
Without limiting CITY’s obligation to indemnify and hold harmless VTA, CITY must procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work by CITY, its agents, representatives, employees, or subcontractors. The cost of such insurance must be borne exclusively by CITY. In the event of any material change in the Agreement Scope of Services, VTA reserves the right to change the insurance requirements set forth herein. CITY must furnish complete copies of all insurance policies, within three (3) business days of any request for such by VTA.

A. Liability and Workers’ Compensation Insurance

1. Minimum Scope of Coverage
Coverage must be at least as broad as:
a. General Liability coverage; Insurance Services Office “occurrence” form CG 0001.

General Liability insurance written on a “claims made” basis is not acceptable. Completed Operations coverage must be continuously maintained for at least two (2) years after Final Acceptance of the Work.
b. Business Auto Coverage, Insurance Services Office form number CA 0001, covering Automobile Liability, code 1 “any auto.” Auto Liability written on a “claims-made” basis is not acceptable.
c. Workers’ Compensation insurance, as required by the Labor Code of the State of California, and Employer’s Liability insurance.
d. Professional Liability, including limited contractual liability coverage, covering liability arising out of any negligent act, error, mistake or omission in the performance of Contractor’s services under this Contract. This coverage must be continuously maintained for a minimum of two (2) years following completion of this Contract. This coverage may be written on a “claims made” basis, if so, please see special provisions in Section B. e. Contractor’s Pollution/Environmental Impairment Liability: covering liability arising out of the treatment, handling, storage, transportation, or accidental release of any hazardous material.

2. Minimum Limits of Insurance
a. CITY must maintain limits no less than:

1. General Liability (including umbrella/excess liability): $4,000,000 limit per occurrence for bodily injury, personal injury, and property damage. If General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general

aggregate limit must be twice the required occurrence limit. This requirement may be satisfied by a combination of General Liability with Excess or Umbrella, but in no event may the General Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying General Liability policy, “Follow Form” coverage, and a “Drop Down” provision.

2. Automobile Liability (including umbrella/excess liability): $4,000,000 limit per accident for bodily injury and property damage. This requirement may be satisfied by a combination of Auto with Excess or Umbrella, but in no event may the Automobile Liability primary policy limit per occurrence be less than $2,000,000, unless Excess policies feature inception and expiration dates concurrent with the underlying auto liability policy, “Follow Form” coverage, and a “Drop Down” provision.

3. Workers’ Compensation and Employer’s Liability: Statutory Workers’ Compensation limits and Employer’s Liability limits of $1,000,000 per accident.

4. Professional Liability: $2,000,000 each occurrence/aggregate minimum limit per claim. This requirement may be satisfied by a combination of Professional Liability insurance with Excess or Umbrella policies, but in no event may the Professional Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision.

5. Contractor’s Pollution/Environmental Impairment Liability: $3,000,000 per occurrence. This requirement may be satisfied by a combination of Pollution Liability insurance with Excess or Umbrella policies. Umbrella/Excess policies must feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision.
b. Notwithstanding any language in this Agreement to the contrary, if CITY carries insurance limits exceeding the minima stated in Section 2(a)(1)-(5) immediately above, such greater limits will apply to this Agreement.

3. Self-Insured Retention
The certificate of insurance must disclose the actual amount of any deductible or selfinsured retention for all coverages required herein. Any self-insured retention or deductible in excess of $250,000 must be declared to and approved by VTA. If CITY is a governmental authority such as a state, municipality or special district, selfinsurance is permitted. To apply for approval for a level of retention or deductible in excess of $250,000, CITY must provide a current financial report including balance sheets and income statements for the past three years, so that VTA can assess CITY’s ability to pay claims falling within the self-insured retention or deductible. Upon review of the financial report, if deemed necessary by VTA in its sole discretion, VTA may elect one of the following options: to accept the existing self-insured retention or deductible; require the insurer to reduce or eliminate the self-insured retention or deductible as respects VTA, its directors, officers, officials, employees and volunteers; or to require CITY to procure a bond guaranteeing payment of losses and related

investigations, claim administration and defense expenses. Applicable costs resulting therefrom will be borne solely by CITY. CITY may request execution of a nondisclosure agreement prior to submission of financial reports.

B. Reserved.

C. Claims Made Provisions
Claims-made coverage is never acceptable for General Liability or Auto Liability. Claimsmade may be considered for Professional, Environmental/Pollution, or Cyber. For coverage written on a claims-made basis, it must be clearly stated on the Certificate of Insurance. In addition to all other coverage requirements, such policy must provide that:

1. The policy retroactive date must be no later than the date of this Agreement.

2. If any policy is not renewed or the retroactive date of such policy is to be changed, CITY must obtain or cause to be obtained the broadest extended reporting period coverage available in the commercial insurance market. This extended reporting provision must cover at least two (2) years.

3. No prior acts exclusion may be added to the policy during the Agreement period.

4. The policy allows for reporting of circumstances or incidents that might give rise to future claims.

D. Other Provisions
The policies must contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability
a. VTA, its directors, officers, officials, employees and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of CITY, including VTA’s general supervision of CITY; products and completed operations of CITY and its subcontractors; premises owned, occupied or used by CITY; or automobiles owned, leased, hired or borrowed by CITY. The coverage must contain no special limitations on the scope of protection afforded to VTA, its directors, officers, officials, employees, or volunteers. Additional Insured endorsements must provide coverage at least as broad as afforded by the combination of ISO CG 20 10 10 01 and CG 20 37 10 01.
b. Any failure to comply with reporting provisions of the policies may not affect coverage provided to VTA, its directors, officers, officials, employees, or volunteers. c. CITY’s insurance must apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The General Liability General Aggregate limit must apply per project, not per policy.

2. All Coverages
a. The insurer must agree to waive all rights of subrogation against VTA, its directors, officers, officials, employees, and volunteers for losses arising from work performed by CITY and its subcontractors for VTA.
b. CITY’s insurance coverage must be primary insurance as respects VTA, its directors, officers, officials, employees, and volunteers. Self-insurance or insurance that may be

maintained by VTA, its directors, officers, officials, employees, or volunteers may apply only as excess to CITY’s insurance. CITY’s insurance must not seek contribution from VTA’s insurance program.

3. Other Insurance Provisions
a. For all lines of coverage, the Certificate must disclose the actual amount of the Deductible or Self-Insured Retention.
b. If any coverage forms or endorsements required by this Agreement are updated by their publishers, whether they be the insurance carrier(s), the Insurance Services Office, or the American Association of Insurance Services, during the duration of this Agreement, VTA reserves the rights to require CITY to procure said coverage forms or endorsements using the updated versions upon the next renewal cycle.

E. Acceptability of Insurers
Insurance and bonds must be placed with insurers with an A.M. Best’s rating of no less than A VII (financial strength rating of no less than A and financial size category of no less than VII), unless specific prior written approval has been granted by VTA.

F. Certificates of Insurance
City must furnish VTA with a Certificate of Insurance. The certificates for each insurance policy must be signed by an authorized representative of that insurer. The certificates must be issued on a standard ACORD Form. City must instruct their insurance broker/agent to submit all insurance certificates and required notices electronically in PDF format to [email protected]. All endorsements must be attached to the ACORD certificate in a single PDF document.

The certificates must (1) identify the insurers, the types of insurance, the insurance limits, the deductibles or lack thereof, and the policy term, (2) include copies of all the actual policy endorsements required herein, and (3) in the “Certificate Holder” box include:

Santa Clara Valley Transportation Authority (“VTA”)
3331 North First Street
San Jose, CA 95134-1906
In the Description of Operations/Locations/Vehicles/Special Items Box, the VTA property leased must appear, the list of policies scheduled as underlying on the Umbrella/Excess policy must be listed, Certificate Holder must be named as additional insured, and Waiver of Subrogation must be indicated as endorsed to all policies as stated in the Agreement documents.

It is a condition precedent to granting of this Agreement that all insurance certificates and endorsements be received and approved by VTA before Agreement execution. No occupancy may be taken until insurance is in full compliance. VTA reserves the rights to require complete, certified copies of all required insurance policies, at any time.

If City receives notice that any of the insurance policies required by this Exhibit may be cancelled or coverage reduced for any reason whatsoever, City must immediately provide written notice to VTA that such insurance policy required by this Exhibit is canceled or coverage is reduced.

G. Maintenance of Insurance
If City fails to maintain insurance as required herein, VTA, at its option, may suspend the Agreement until a new policy of insurance is in effect.

PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manager 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

FINANCE COMMISSION REPORT
MEETING DATE:11/15/2022
ITEM NO: 8
DATE: November 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the First Quarter Investment Report (July through September 2022) for Fiscal Year 2022/23
RECOMMENDATION:

Receive the First Quarter Investment Report (July through September 2022) for Fiscal Year (FY) 2022/23.

DISCUSSION:

The Finance Commission will receive the report on November 14, 2022.

As of September 30, 2022, the Town’s weighted portfolio yield was 1.8% which was approximately 29 basis points higher than the Local Agency Investment Fund (LAIF) yield of

1.51%. This yield differential to LAIF was primarily due to the LAIF portfolio’s shorter weighted average maturity (WAM) of 304 days versus the Town’s longer WAM of 453 days. The Town’s weighted average rate of return of 1.80% at the close of the First quarter was 53 basis points higher when compared to the First quarter return of 1.27% in 2021.

In the first quarter, LAIF yields had climbed from 86 basis points (0.86%) to 151 basis points through the end of September 2022. Staff in coordination with the Town’s investment advisor continued primarily replacing maturing investments in shorter to medium term maturities in the two- to three-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the State Local Agency Investment Fund (LAIF) pool during that same time period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.

Interest rates rose across the yield curve this quarter, especially in the short-term maturity range of six months to two years. The rise in short term rates was the result of the third

PAGE 2 OF 2
SUBJECT: Receive the First Quarter Investment Report (July through September 2022) for Fiscal Year 2022/23
DATE: November 8, 2022
DISCUSSION (continued):

Federal Reserve rate increase this year. In September 2022 the Fed increased interest rates

0.75% or 75 basis points. The Fed has further increased the interest rate by 75 basis point in November 2022 and signaled that further rate hikes may be implemented this year to fight inflationary pressures in the economy.

CONCLUSION:

Staff recommends that the Finance Commission receive the First Quarter Investment Report (July through September 2022) for Fiscal Year 2022/23.

Attachment:

1. First Quarter Investment Report for FY 2022/23 (July through September 2022)

Weighted Average YTM Portfolio Yield: 1.80% Weighted Average Maturity (days) 453 This Month Last Month One year ago
Portfolio Balance $62,736,952 $65,471,423 $59,898,959
Benchmarks/ References:

Town's Average Yield 1.80% 1.49% 1.27%
LAIF Yield for month 1.51% 1.28% 0.21%
3 mo. Treasury 3.29% 2.95% 0.04%
6 mo. Treasury 3.97% 3.36% 0.05%
2 yr. Treasury 4.28% 3.50% 0.28%
5 yr. Treasury (most recent) 4.09% 3.35% 0.97%
10 Yr. Treasury 3.84% 3.20% 1.49%
Town of Los Gatos
Summary Investment Information
September 30, 2022
0 - 1 year
30%
1 - 2 years
30%
2 - 3 years
25%
3 - 5 years
15%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated September 21, 2021 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

Month YTD
Fund Balances - Beginning of Month/Period $65,471,423.28 $72,886,942.83 Receipts 2,764,523.98 11,390,792.64
Disbursements (5,498,995.75) (21,540,783.96)
Fund Balances - End of Month/Period $62,736,951.51 $62,736,951.51 Portfolio Allocation: % of Portfolio Max. % 0r $ Allowed Per State Law or Policy BNY MM $124,284.61 0.23% 20% of Town Portfolio
US Treasury Notes $9,883,589.53 18.41% No Max. on US Treasuries Government Agency Debenture Notes $23,416,349.00 43.62% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,336,173.01 24.84% 30% of Town Portfolio Local Agency Investment Fund $6,918,398.79 12.89% $75 M per State Law Subtotal - Investments 53,678,794.94 100.00%
Reconciled Demand Deposit Balances 9,058,156.57
Total Treasurer's Fund $62,736,951.51
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
September 30, 2022
BNY MM

0.23% US Treasury Notes

18.41%
Government Agency Debenture Notes

43.62%
Corporate Medium Term Bonds

24.8%
Local Agency Investment Fund

12.9%
Portfolio Investment Allocation
0 10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Treasurer's Fund Balances
page 2 Page 189
SEP 22 SEP 22 SEP 22
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
`
Cert. of Participation 2002 Series A Reserve Fund 687,317.89 $ 906.90 $ 688,224.79 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 132.01 0.25 $ 132.26 Note 1 Cert. of Participation 2002 Lease Payment Fund 65.79 $ 65.79 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,280,188.55 1,905.43 1,282,093.98 Note 2 Total Restricted Funds: $ 1,967,704.24 $ - $ 2,812.58 $ - $ 1,970,516.82 CEPPT IRS Section 115 Trust 677,890.30 (39,535.22) 0.00 $ 638,355.08 Grand Total COP's and CEPPT Trust $ 2,645,594.54 $ - $ (36,722.64) $ - $ 2,608,871.90 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.

Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.

Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.

Town of Los Gatos
Non-Treasury Restricted Fund Balances
September 30, 2022

Town of Los Gatos
Statement of Interest Earned
September 30, 2022
Interest by Month
July 2022 $60,107.76
August 2022 61,456.65
September 2022 60,153.38
October 2022
November 2022
December 2022
January 2023
February 2023
March 2023
April 20203
May 2023
June 2023
$181,717.79

Town of Los Gatos Investment Schedule September 2022
Maturity Yield to Interest Interest Interest Days
Deposit Par Original Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Date Value Cost Value Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Treasury 91282CAP6 US Treasury Note 6/30/2021 1,000,000.00 995,390.63 957,890.62 10/15/2023 0.33% $ 990.44 $ 3,260.06 $ 821.71 380 Toyota Motor Credit 89236THA6_1 Corporate Bond 04/12/21 500,000.00 510,580.00 485,470.00 8/25/2023 0.45% $ 9,243.75 $ 2,780.30 $ 576.10 329 Toyota Motor Credit 89236THA6 Corporate Bond 1/11/2022 1,100,000.00 1,107,315.00 1,068,034.00 8/25/2023 0.94% $ 9,240.00 $ 4,812.29 $ 2,604.30 329 US Treasury 91282CDD0 US Treasury Note 1/13/2022 1,100,000.00 1,090,675.78 1,054,367.18 10/31/2023 0.85% $ 1,219.27 $ 4,286.54 $ 2,347.39 396 US Treasury 91282CCN9 US Treasury Note 1/13/2022 1,200,000.00 1,188,375.00 1,159,875.00 7/31/2023 0.75% $ 823.37 $ 4,153.18 $ 2,274.36 304 FFCB 3133EKMX1 Gov. Agency Debenture 8/2/2019 1,000,000.00 1,014,400.00 971,811.35 2/23/2024 1.90% $ 73,775.83 $ 55,756.94 $ 4,825.62 511 FFCB 3133EMBE1 Gov. Agency Debenture 10/8/2020 1,600,000.00 1,598,000.00 1,502,713.78 3/28/2024 0.34% $ 9,453.34 $ 9,279.41 $ 1,355.09 545 FFCB 3133EMCQ3 Gov. Agency Debenture 10/16/2020 2,000,000.00 1,998,000.00 1,912,674.66 10/13/2024 0.31% $ 8,353.33 $ 10,396.24 $ 1,537.71 744 BankAmerica Corp 06051GHC6 Corporate Bond 10/9/2020 1,300,000.00 1,366,287.00 1,293,097.70 12/20/2023 0.66% $ 66,279.92 $ 31,569.88 $ 4,617.53 446 Home Depot 437076BM3 Corporate Bond 8/4/2022 1,000,000.00 991,960.00 944,643.14 10,250.00 1/1/2026 3.04% $ (10,250.00) $ - $ 5,052.73 1189 Home Depot 912828ZW3 US Treasury Note 8/9/2022 350,000.00 322,096.88 314,138.67 95.11 6/30/2025 3.16% $ (95.11) $ - $ 1,498.67 1004 IBM 459200JY8 Corporate Bond 3/25/2021 1,000,000.00 1,071,040.00 972,680.13 5/15/2024 0.71% $ 34,166.67 $ 9,358.41 $ 1,863.58 593 US Treasury 912828R28 US Treasury Note 7/2/2019 500,000.00 497,246.09 493,046.88 4/30/2023 1.77% $ 22,984.04 $ 26,507.80 $ 2,229.18 212 Freddie Mac 3137EAEN5 Gov. Agency Debenture 7/19/2019 2,000,000.00 2,072,358.00 1,978,254.26 6/19/2023 1.79% $ 160,416.67 $ 107,829.55 $ 9,211.07 262 FFCB 3133EKVF0 Gov. Agency Debenture 7/22/2019 1,000,000.00 999,630.00 995,158.88 1/17/2023 1.89% $ 55,989.58 $ 55,482.90 $ 4,752.73 109 Treasury 91282CBT7 US Treasury Note 9/30/2022 800,000.00 712,565.18 710,343.75 3/31/2026 4.14% $ - $ - $ - 1278 FFCB 3133ENP95 Gov. Agency Debenture 9/30/2022 900,000.00 900,939.60 896,970.80 9/30/2025 4.14% $ - $ - $ - 1096 US Treasury 91282CDA6 Gov. Agency Debenture 1/31/2022 1,100,000.00 1,085,222.44 1,056,515.63 9/30/2023 1.07% $ 1,820.74 $ 4,781.92 $ 2,932.91 365 US Treasury 91282CAW1 Gov. Agency Debenture 7/15/2021 1,200,000.00 1,199,437.50 1,147,031.26 11/15/2023 0.27% $ 2,502.72 $ 3,107.52 $ 816.83 411 American Honda 02665WCZ2 Corporate Bond 11/27/2019 1,000,000.00 1,012,410.01 960,463.79 6/27/2024 2.12% $ 72,733.34 $ 55,189.68 $ 5,367.28 636 JP Morgan Chase 46625HRS1 Gov. Agency Debenture 9/23/2022 500,000.00 474,660.00 464,179.21 4,355.56 3/15/2026 4.70% $ (4,355.56) $ - $ 446.63 1262 Honeywell Int'l. 438516BW5 Corporate Bond 11/20/2019 1,000,000.00 1,014,660.00 959,787.36 7/15/2024 1.64% $ 62,483.33 $ 51,828.99 $ 5,003.43 654 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2/23/2021 1,000,000.00 1,077,370.00 973,305.92 5/17/2024 0.44% $ 35,150.00 $ 6,129.72 $ 1,146.21 595 FNMA 3135G0V75 Gov. Agency Debenture 10/17/2019 1,100,000.00 1,105,833.30 1,053,162.83 7/2/2024 1.63% $ 52,456.25 $ 48,706.74 $ 4,540.04 641 US Bancorp 91159HHV5 Corporate Bond 12/24/2019 1,000,000.00 1,049,040.00 982,792.66 1/5/2024 2.12% $ 88,218.75 $ 54,380.13 $ 5,443.93 462 FHLB 3133834G3 Gov. Agency Debenture 3/11/2021 1,400,000.00 1,460,522.00 1,379,349.69 6/9/2023 0.19% $ 37,022.22 $ 3,664.98 $ 708.36 252 FFCB 3133EKQA7 Gov. Agency Debenture 10/21/2019 1,000,000.00 1,019,780.00 957,920.18 9/10/2024 1.66% $ 60,031.11 $ 45,130.78 $ 4,223.84 711 PNC Financial 69349LAM0 Corporate Bond 2/7/2022 1,000,000.00 1,033,470.00 994,488.14 6/25/2023 1.49% $ 17,733.33 $ 5,372.34 $ 3,456.33 268 FHLB 3135G05X7 Gov. Agency Debenture 6/10/2022 1,200,000.00 1,102,952.40 1,072,980.47 8/25/2025 3.04% $ 937.50 $ 1,902.68 $ 8,752.32 1060 Treasury 912828ZL7 Gov. Agency Debenture 4/12/2022 1,700,000.00 1,583,927.57 1,539,894.53 4/30/2025 2.72% $ 316.99 $ 9,611.14 $ 11,192.72 943 JP Morgan Chase 46625HJT8 Corporate Bond 9/23/2019 1,400,000.00 1,485,414.00 1,383,451.22 2/1/2024 2.39% $ 154,913.89 $ 96,022.89 $ 8,737.99 489 American Honda 02665WDH1 Corporate Bond 2/14/2020 600,000.00 603,756.00 591,917.98 5/10/2023 1.75% $ 28,145.00 $ 25,034.14 $ 2,656.45 222 Treasury 912828V23 US Treasury Note 11/29/2021 1,000,000.00 1,032,933.04 975,390.62 12/31/2023 0.66% $ 13,206.52 $ 3,924.44 $ 1,695.07 457 Treasury 91282CBE0 2 Gov. Agency Debenture 10/7/2021 1,000,000.00 994,768.98 947,851.56 1/15/2024 0.36% $ 964.67 $ 2,587.41 $ 894.89 472 FHLB 3130ALH98 Gov. Agency Debenture 2/26/2021 1,000,000.00 997,610.00 941,164.91 2/26/2024 0.33% $ 3,750.00 $ 4,416.63 $ 830.94 514 Treasury 912828M80 US Treasury Note 7/22/2019 1,000,000.00 1,006,175.23 998,087.75 11/30/2022 1.81% $ 57,158.47 $ 53,444.10 $ 4,578.08 61 Treasury 912828U57 US Treasury Note 7/31/2019 1,000,000.00 1,011,875.00 975,781.25 11/30/2023 1.84% $ 60,208.33 $ 54,014.24 $ 4,666.02 426 Treasury 912828X70 US Treasury Note 12/30/2019 1,000,000.00 1,010,589.29 964,570.31 4/30/2024 1.75% $ 51,703.30 $ 48,922.73 $ 4,929.78 578 Treasury 912828XT2 US Treasury Note 10/31/2019 1,000,000.00 1,015,667.41 963,085.94 5/31/2024 1.64% $ 51,639.34 $ 44,208.50 $ 4,180.04 609 American Honda 02665WCQ2 Corporate Bond 9/14/2021 950,000.00 1,012,871.00 941,710.15 10/10/2023 0.41% $ 19,705.90 $ 3,232.93 $ 1,029.17 375 FFCB 3133EJ3Q0 Gov. Agency Debenture 8/28/2019 1,500,000.00 1,587,503.75 1,475,983.77 12/21/2023 2.12% $ 121,348.96 $ 64,945.24 $ 5,761.78 447 Freddie Mac 3133EKKT2 Gov. Agency Debenture 6/24/2019 1,550,000.00 1,573,188.00 1,543,058.90 2/8/2023 1.82% $ 117,606.25 $ 86,008.42 $ 7,180.38 131 Treasury 91282CBE0 Gov. Agency Debenture 9/15/2021 650,000.00 647,615.46 616,103.51 1/15/2024 0.28% $ 675.62 $ 1,447.14 $ 462.28 472 Subtotal $ 46,200,000.00 $ 46,636,111.54 $ 44,571,200.34 $ 14,700.67 $ 1,550,668.07 $ 1,103,488.93 $ 147,201.46 BNY MM Money Market 124,284.61 124,284.61 0.00% 1
LAIF State Investment Pool 6,918,398.79 6,918,398.79 1.51% 23,540.77 1 $53,678,794.94 $51,613,883.74 $ 1,550,668.07 $ 1,103,488.93 $ 170,742.23 Matured Assets
IBM 459200HG9 Corporate Bond 8/8/2019 1,000,000.00 995,010.00 8/1/2022 2.05% $ 55,885.42 $ 59,141.32 $ 1,790.47 JP Morgan Chase 46625HJE1 Gov. Agency Debenture 2/11/2020 900,000.00 934,587.00 9/23/2022 1.74% $ 76,537.50 $ 38,210.60 $ 3,733.22 Treasury 912828L57 US Treasury Note 7/22/2019 1,200,000.00 1,197,988.40 9/30/2022 2.09% $ 67,016.39 $ 63,644.66 $ 5,451.87 Total Investments "Matured" $ 10,975.56
Total Interest FY 22_23 Matured and Current $ 181,717.79 Maturity Profile Amount
0-1 year $20,180,521.16
1-2 years $25,411,172.15
2-3 years $5,006,976.85
3-5 years $ 3,080,124.78
$53,678,794.94
Amortized
Institution Cost
BNY Assets $46,636,111.54
BNY MM 124,284.61
LAIF 6,918,398.79
Totals: $53,678,794.94
Market to Cost Position Report

Town of Los Gatos
Summary Investment Information
August 31, 2022
Weighted Average YTM Portfolio Yield: 1.49% Weighted Average Maturity (days) 429 This Month Last Month One year ago
Portfolio Balance $65,471,423 $67,683,852 $61,207,129
Benchmarks/ References:

Town's Average Yield 1.49% 1.37% 1.32%
LAIF Yield for month 1.28% 1.09% 0.22%
3 mo. Treasury 2.95% 2.41% 0.05%
6 mo. Treasury 3.36% 2.88% 0.06%
2 yr. Treasury 3.50% 2.89% 0.21%
5 yr. Treasury (most recent) 3.35% 2.68% 0.78%
10 Yr. Treasury 3.20% 2.65% 1.31%
0 - 1 year
30%
1 - 2 years
30%
2 - 3 years
25%
3 - 5 years
15%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated September 21, 2021 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

Month YTD
Fund Balances - Beginning of Month/Period $67,683,851.97 $72,886,942.83 Receipts 2,581,038.80 8,626,268.66
Disbursements (4,793,467.49) (16,041,788.21)
Fund Balances - End of Month/Period $65,471,423.28 $65,471,423.28 Portfolio Allocation: % of Portfolio Max. % 0r $ Allowed Per State Law or Policy BNY MM $77,171.39 0.14% 20% of Town Portfolio
US Treasury Notes $10,369,012.75 19.32% No Max. on US Treasuries Government Agency Debenture Notes $22,975,336.40 42.80% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,336,173.01 24.85% 30% of Town Portfolio Local Agency Investment Fund $6,918,398.79 12.89% $75 M per State Law Subtotal - Investments 53,676,092.34 100.00%
Reconciled Demand Deposit Balances 11,795,330.94
Total Treasurer's Fund $65,471,423.28
Town of Los Gatos
August 31, 2022
Portfolio Allocation & Treasurer's Fund Balances
BNY MM

0.14% US Treasury Notes

19.32%
Government Agency Debenture Notes

42.80%
Corporate Medium Term Bonds

24.8%
Local Agency Investment Fund

12.9%
Portfolio Investment Allocation
0 10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Treasurer's Fund Balances
page 2 Page 194
AUG 22 AUG 22 AUG 22
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
`
Cert. of Participation 2002 Series A Reserve Fund 686,739.26 578.63 $ 687,317.89 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 1,087,362.50 132.01 1,087,362.50 $ 132.01 Note 1 Cert. of Participation 2002 Lease Payment Fund 551,462.50 65.79 551,462.50 $ 65.79 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,278,873.31 1,315.24 1,280,188.55 Note 2 Total Restricted Funds: $ 3,604,437.57 $ - $ 2,091.67 $ 1,638,825.00 $ 1,967,704.24 CEPPT IRS Section 115 Trust 700,570.36 (22,680.06) 0.00 677,890.30 Grand Total COP's and CEPPT Trust $ 4,305,007.93 $ - $ (20,588.39) $ 1,638,825.00 $ 2,645,594.54 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.

Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.

Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.

Town of Los Gatos
Non-Treasury Restricted Fund Balances
August 31, 2022

Town of Los Gatos
Statement of Interest Earned
August 31, 2022
Interest by Month
July 2022 $60,107.76
August 2022 61,456.65
September 2022
October 2022
November 2022
December 2022
January 2023
February 2023
March 2023
April 20203
May 2023
June 2023
$121,564.41

Town of Los Gatos Investment Schedule August 2022
Maturity Yield to Interest Interest Interest Days
Deposit Par Original Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Date Value Cost Value Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Treasury 91282CAP6 US Treasury Note 6/30/2021 1,000,000.00 995,390.63 963,320.31 10/15/2023 0.33% $ 990.44 $ 3,260.06 $ 553.76 410 Toyota Motor Credit 89236THA6_1 Corporate Bond 04/12/21 500,000.00 510,580.00 488,090.12 8/25/2023 0.45% $ 9,243.75 $ 2,780.30 $ 388.24 359 Toyota Motor Credit 89236THA6 Corporate Bond 1/11/2022 1,100,000.00 1,107,315.00 1,073,798.26 8/25/2023 0.94% $ 9,240.00 $ 4,812.29 $ 1,755.07 359 US Treasury 91282CDD0 US Treasury Note 1/13/2022 1,100,000.00 1,090,675.78 1,061,585.93 10/31/2023 0.85% $ 1,219.27 $ 4,286.54 $ 1,581.94 426 US Treasury 91282CCN9 US Treasury Note 1/13/2022 1,200,000.00 1,188,375.00 1,164,000.00 7/31/2023 0.75% $ 823.37 $ 4,153.18 $ 1,532.72 334 FFCB 3133EKMX1 Gov. Agency Debenture 8/2/2019 1,000,000.00 1,014,400.00 981,098.07 2/23/2024 1.90% $ 73,775.83 $ 55,756.94 $ 3,252.05 541 FFCB 3133EMBE1 Gov. Agency Debenture 10/8/2020 1,600,000.00 1,598,000.00 1,515,962.93 3/28/2024 0.34% $ 7,053.34 $ 9,279.41 $ 913.21 575 FFCB 3133EMCQ3 Gov. Agency Debenture 10/16/2020 2,000,000.00 1,998,000.00 1,923,113.90 10/13/2024 0.31% $ 8,353.33 $ 10,396.24 $ 1,036.28 774 BankAmerica Corp 06051GHC6 Corporate Bond 10/9/2020 1,300,000.00 1,366,287.00 1,295,197.48 12/20/2023 0.66% $ 66,279.92 $ 31,569.88 $ 3,111.82 476 Home Depot 437076BM3 Corporate Bond 8/4/2022 1,000,000.00 991,960.00 970,739.39 10,250.00 1/1/2026 3.04% $ (10,250.00) $ - $ 2,393.40 1219 Home Depot 912828ZW3 US Treasury Note 8/9/2022 350,000.00 322,096.88 319,798.83 95.11 6/30/2025 3.16% $ (95.11) $ - $ 634.05 1034 IBM 459200JY8 Corporate Bond 3/25/2021 1,000,000.00 1,071,040.00 987,684.83 5/15/2024 0.71% $ 34,166.67 $ 9,358.41 $ 1,255.89 623 US Treasury 912828R28 US Treasury Note 7/2/2019 500,000.00 497,246.09 494,296.88 4/30/2023 1.77% $ 22,984.04 $ 26,507.80 $ 1,502.27 242 Freddie Mac 3137EAEN5 Gov. Agency Debenture 7/19/2019 2,000,000.00 2,072,358.00 1,986,759.14 6/19/2023 1.79% $ 160,416.67 $ 107,829.55 $ 6,207.46 292 FFCB 3133EKVF0 Gov. Agency Debenture 7/22/2019 1,000,000.00 999,630.00 994,819.42 1/17/2023 1.89% $ 55,989.58 $ 55,482.90 $ 3,202.92 139 Treasury 912828L57 US Treasury Note 7/22/2019 1,200,000.00 1,197,988.40 1,199,487.73 9/30/2022 2.09% $ 56,516.39 $ 63,644.66 $ 3,674.09 30 US Treasury 91282CDA6 Gov. Agency Debenture 1/31/2022 1,100,000.00 1,085,222.44 1,062,617.18 9/30/2023 1.07% $ 445.74 $ 4,781.92 $ 1,976.53 395 US Treasury 91282CAW1 Gov. Agency Debenture 7/15/2021 1,200,000.00 1,199,437.50 1,155,093.74 11/15/2023 0.27% $ 2,502.72 $ 3,107.52 $ 550.47 441 American Honda 02665WCZ2 Corporate Bond 11/27/2019 1,000,000.00 1,012,410.01 975,141.05 6/27/2024 2.12% $ 72,733.34 $ 55,189.68 $ 3,617.08 666 JP Morgan Chase 46625HJE1 Gov. Agency Debenture 2/11/2020 900,000.00 934,587.00 900,099.56 9/23/2022 1.74% $ 61,912.50 $ 38,210.60 $ 2,723.05 23 Honeywell Int'l. 438516BW5 Corporate Bond 11/20/2019 1,000,000.00 1,014,660.00 974,353.77 7/15/2024 1.64% $ 62,483.33 $ 51,828.99 $ 3,371.88 684 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2/23/2021 1,000,000.00 1,077,370.00 984,524.44 5/17/2024 0.44% $ 35,150.00 $ 6,129.72 $ 772.44 625 FNMA 3135G0V75 Gov. Agency Debenture 10/17/2019 1,100,000.00 1,105,833.30 1,067,213.17 7/2/2024 1.63% $ 52,456.25 $ 48,706.74 $ 3,059.59 671 US Bancorp 91159HHV5 Corporate Bond 12/24/2019 1,000,000.00 1,049,040.00 995,128.01 1/5/2024 2.12% $ 88,218.75 $ 54,380.13 $ 3,668.74 492 FHLB 3133834G3 Gov. Agency Debenture 3/11/2021 1,400,000.00 1,460,522.00 1,386,298.19 6/9/2023 0.19% $ 37,022.22 $ 3,664.98 $ 477.37 282 FFCB 3133EKQA7 Gov. Agency Debenture 10/21/2019 1,000,000.00 1,019,780.00 971,772.51 9/10/2024 1.66% $ 49,631.11 $ 45,130.78 $ 2,846.50 741 PNC Financial 69349LAM0 Corporate Bond 2/7/2022 1,000,000.00 1,033,470.00 998,771.46 6/25/2023 1.49% $ 17,733.33 $ 5,372.34 $ 2,329.27 298 FHLB 3135G05X7 Gov. Agency Debenture 6/10/2022 1,200,000.00 1,102,952.40 1,094,574.72 8/25/2025 3.04% $ 937.50 $ 1,902.68 $ 5,898.30 1090 Treasury 912828ZL7 Gov. Agency Debenture 4/12/2022 1,700,000.00 1,583,927.57 1,566,058.60 4/30/2025 2.72% $ 316.99 $ 9,611.14 $ 7,542.92 973 JP Morgan Chase 46625HJT8 Corporate Bond 9/23/2019 1,400,000.00 1,485,414.00 1,405,397.60 2/1/2024 2.39% $ 154,913.89 $ 96,022.89 $ 5,888.64 519 American Honda 02665WDH1 Corporate Bond 2/14/2020 600,000.00 603,756.00 591,503.28 5/10/2023 1.75% $ 28,145.00 $ 25,034.14 $ 1,790.22 252 Treasury 912828V23 US Treasury Note 11/29/2021 1,000,000.00 1,032,933.04 983,984.38 12/31/2023 0.66% $ 13,206.52 $ 3,924.44 $ 1,142.33 487 Treasury 91282CBE0 2 Gov. Agency Debenture 10/7/2021 1,000,000.00 994,768.98 955,234.38 1/15/2024 0.36% $ 964.67 $ 2,587.41 $ 603.08 502 FHLB 3130ALH98 Gov. Agency Debenture 2/26/2021 1,000,000.00 997,610.00 948,590.09 2/26/2024 0.33% $ 3,750.00 $ 4,416.63 $ 559.98 544 Treasury 912828M80 US Treasury Note 7/22/2019 1,000,000.00 1,006,175.23 997,942.90 11/30/2022 1.81% $ 57,158.47 $ 53,444.10 $ 3,085.23 91 Treasury 912828U57 US Treasury Note 7/31/2019 1,000,000.00 1,011,875.00 983,867.19 11/30/2023 1.84% $ 60,208.33 $ 54,014.24 $ 3,144.49 456 Treasury 912828X70 US Treasury Note 12/30/2019 1,000,000.00 1,010,589.29 976,445.31 4/30/2024 1.75% $ 51,703.30 $ 48,922.73 $ 3,322.24 608 Treasury 912828XT2 US Treasury Note 10/31/2019 1,000,000.00 1,015,667.41 975,273.44 5/31/2024 1.64% $ 51,639.34 $ 44,208.50 $ 2,816.99 639 American Honda 02665WCQ2 Corporate Bond 9/14/2021 950,000.00 1,012,871.00 948,376.01 10/10/2023 0.41% $ 19,705.90 $ 3,232.93 $ 693.57 405 FFCB 3133EJ3Q0 Gov. Agency Debenture 8/28/2019 1,500,000.00 1,587,503.75 1,488,729.56 12/21/2023 2.12% $ 121,348.96 $ 64,945.24 $ 3,882.94 477 Freddie Mac 3133EKKT2 Gov. Agency Debenture 6/24/2019 1,550,000.00 1,573,188.00 1,544,306.76 2/8/2023 1.82% $ 117,606.25 $ 86,008.42 $ 4,838.95 161 Treasury 91282CBE0 Gov. Agency Debenture 9/15/2021 650,000.00 647,615.46 620,902.35 1/15/2024 0.28% $ 675.62 $ 1,447.14 $ 311.54 502 Subtotal $ 46,100,000.00 $ 46,680,522.16 $ 44,971,952.87 $ 10,345.11 $ 1,659,277.52 $ 1,205,344.19 $ 103,909.51 BNY MM Money Market 77,171.39 77,171.39 0.00% 1
LAIF State Investment Pool 6,918,398.79 6,918,398.79 1.28% 15,864.43 1 $53,676,092.34 $51,967,523.05 $ 1,659,277.52 $ 1,205,344.19 $ 119,773.94 Matured Assets
IBM 459200HG9 Corporate Bond 8/8/2019 1,000,000.00 995,010.00 8/1/2022 2.05% $ 55,885.42 $ 59,141.32 $ 1,790.47 Total Investments "Matured" $ 1,790.47
Total Interest FY 22_23 Matured and Current $ 121,564.41 Maturity Profile Amount
0-1 year $21,180,760.90
1-2 years $24,462,214.59
2-3 years $6,026,756.85
3-5 years $ 991,960.00
$52,661,692.34
Amortized
Institution Cost
BNY Assets $46,680,522.16
BNY MM 77,171.39
LAIF 6,918,398.79
Totals: $53,676,092.34
Market to Cost Position Report

Town of Los Gatos
Summary Investment Information
July 31, 2022
Weighted Average YTM Portfolio Yield: 1.37% Weighted Average Maturity (days) 426 This Month Last Month One year ago
Portfolio Balance $67,683,852 $72,886,943 $61,422,761
Benchmarks/ References:

Town's Average Yield 1.37% 1.37% 1.32%
LAIF Yield for month 1.09% 0.86% 0.22%
3 mo. Treasury 2.41% 1.71% 0.05%
6 mo. Treasury 2.88% 2.52% 0.05%
2 yr. Treasury 2.89% 2.96% 0.19%
5 yr. Treasury (most recent) 2.68% 3.04% 0.69%
10 Yr. Treasury 2.65% 3.02% 1.47%
0 - 1 year
30%
1 - 2 years
30%
2 - 3 years
25%
3 - 5 years
15%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated September 21, 2021 and also in compliance with the requirements of Section 53601 of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

Month YTD
Fund Balances - Beginning of Month/Period $72,886,942.83 $72,886,942.83 Receipts 6,045,229.86 6,045,229.86
Disbursements (11,248,320.72) (11,248,320.72)
Fund Balances - End of Month/Period $67,683,851.97 $67,683,851.97 Portfolio Allocation: % of Portfolio Max. % 0r $ Allowed Per State Law or Policy BNY MM $292,775.99 0.55% 20% of Town Portfolio
US Treasury Notes $10,046,915.87 18.75% No Max. on US Treasuries Government Agency Debenture Notes $22,975,336.40 42.89% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,339,223.01 24.90% 30% of Town Portfolio Local Agency Investment Fund $6,918,398.79 12.91% $75 M per State Law Subtotal - Investments 53,572,650.06 100.00%
Reconciled Demand Deposit Balances 14,111,201.91
Total Treasurer's Fund $67,683,851.97
Town of Los Gatos
Portfolio Allocation & Treasurer's Fund Balances
July 31, 2022
BNY MM

0.55% US Treasury Notes

18.75%
Government Agency Debenture Notes

42.89%
Corporate Medium Term Bonds

24.9%
Local Agency Investment Fund

12.9%
Portfolio Investment Allocation
0 10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Treasurer's Fund Balances
page 2 Page 199
JULY 22 JULY 22 JULY 22
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
`
Cert. of Participation 2002 Series A Reserve Fund 686,433.38 $ 305.88 $ 686,739.26 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 0.65 1,087,361.85 $ 1,087,362.50 Note 1 Cert. of Participation 2002 Lease Payment Fund 0.16 551,462.34 $ 551,462.50 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,278,000.08 873.23 1,278,873.31 Note 2 Total Restricted Funds: $ 1,964,434.27 $ 1,638,824.19 $ 1,179.11 $ - $ 3,604,437.57 CEPPT IRS Section 115 Trust 676,150.03 24,420.33 0.00 700,570.36 Grand Total COP's and CEPPT Trust $ 2,640,584.30 $ 1,638,824.19 $ 25,599.44 $ - $ 4,305,007.93 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.

Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.

Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.

Town of Los Gatos
Non-Treasury Restricted Fund Balances
July 31, 2022

Town of Los Gatos
Statement of Interest Earned
July 31, 2022
Interest by Month
July 2022 $60,107.76
August 2022
September 2022
October 2022
November 2022
December 2022
January 2023
February 2023
March 2023
April 20203
May 2023
June 2023
$60,107.76

Town of Los Gatos Investment Schedule July 2022
Maturity Yield to Interest Interest Interest Days
Deposit Par Original Market Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Date Value Cost Value Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Treasury 91282CAP6 US Treasury Note 6/30/2021 1,000,000.00 995,390.63 966,757.81 10/15/2023 0.33% $ 990.44 $ 3,260.06 $ 276.88 441 Toyota Motor Credit 89236THA6_1 Corporate Bond 04/12/21 500,000.00 510,580.00 491,158.32 8/25/2023 0.45% $ 5,868.75 $ 2,780.30 $ 194.12 390 Toyota Motor Credit 89236THA6 Corporate Bond 1/11/2022 1,100,000.00 1,107,315.00 1,080,548.30 8/25/2023 0.94% $ 1,815.00 $ 4,812.29 $ 877.54 390 US Treasury 91282CDD0 US Treasury Note 1/13/2022 1,100,000.00 1,090,675.78 1,065,539.07 10/31/2023 0.85% $ 1,219.27 $ 4,286.54 $ 790.97 457 US Treasury 91282CCN9 US Treasury Note 1/13/2022 1,200,000.00 1,188,375.00 1,166,437.50 7/31/2023 0.75% $ 823.37 $ 4,153.18 $ 766.36 365 FFCB 3133EKMX1 Gov. Agency Debenture 8/2/2019 1,000,000.00 1,014,400.00 988,757.79 2/23/2024 1.90% $ 62,625.83 $ 55,756.94 $ 1,626.03 572 FFCB 3133EMBE1 Gov. Agency Debenture 10/8/2020 1,600,000.00 1,598,000.00 1,534,039.87 3/28/2024 0.34% $ 7,053.34 $ 9,279.41 $ 456.61 606 FFCB 3133EMCQ3 Gov. Agency Debenture 10/16/2020 2,000,000.00 1,998,000.00 1,935,042.84 10/13/2024 0.31% $ 8,353.33 $ 10,396.24 $ 518.14 805 BankAmerica Corp 06051GHC6 Corporate Bond 10/9/2020 1,300,000.00 1,366,287.00 1,296,544.02 12/20/2023 0.66% $ 66,279.92 $ 31,569.88 $ 1,555.91 507 IBM 459200HG9 Corporate Bond 8/8/2019 1,000,000.00 995,010.00 1,000,000.00 8/1/2022 2.05% $ 46,510.42 $ 59,141.32 $ 1,734.51 1 IBM 459200JY8 Corporate Bond 3/25/2021 1,000,000.00 1,071,040.00 994,068.43 5/15/2024 0.71% $ 34,166.67 $ 9,358.41 $ 627.95 654 US Treasury 912828R28 US Treasury Note 7/2/2019 500,000.00 497,246.09 494,921.88 4/30/2023 1.77% $ 22,984.04 $ 26,507.80 $ 751.14 273 Freddie Mac 3137EAEN5 Gov. Agency Debenture 7/19/2019 2,000,000.00 2,072,358.00 1,993,735.16 6/19/2023 1.79% $ 160,416.67 $ 107,829.55 $ 3,103.73 323 FFCB 3133EKVF0 Gov. Agency Debenture 7/22/2019 1,000,000.00 999,630.00 994,917.05 1/17/2023 1.89% $ 55,989.58 $ 55,482.90 $ 1,601.46 170 Treasury 912828L57 US Treasury Note 7/22/2019 1,200,000.00 1,197,988.40 1,199,057.11 9/30/2022 2.09% $ 56,516.39 $ 63,644.66 $ 1,837.04 61 US Treasury 91282CDA6 Gov. Agency Debenture 1/31/2022 1,100,000.00 1,085,222.44 1,066,011.72 9/30/2023 1.07% $ 445.74 $ 4,781.92 $ 988.26 426 US Treasury 91282CAW1 Gov. Agency Debenture 7/15/2021 1,200,000.00 1,199,437.50 1,159,500.00 11/15/2023 0.27% $ 2,502.72 $ 3,107.52 $ 275.24 472 American Honda 02665WCZ2 Corporate Bond 11/27/2019 1,000,000.00 1,012,410.01 982,700.65 6/27/2024 2.12% $ 60,733.34 $ 55,189.68 $ 1,808.54 697 JP Morgan Chase 46625HJE1 Gov. Agency Debenture 2/11/2020 900,000.00 934,587.00 900,823.91 9/23/2022 1.74% $ 61,912.50 $ 38,210.60 $ 1,361.53 54 Honeywell Int'l. 438516BW5 Corporate Bond 11/20/2019 1,000,000.00 1,014,660.00 984,036.55 7/15/2024 1.64% $ 50,983.33 $ 51,828.99 $ 1,685.94 715 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2/23/2021 1,000,000.00 1,077,370.00 995,968.94 5/17/2024 0.44% $ 35,150.00 $ 6,129.72 $ 386.22 656 FNMA 3135G0V75 Gov. Agency Debenture 10/17/2019 1,100,000.00 1,105,833.30 1,077,972.84 7/2/2024 1.63% $ 52,456.25 $ 48,706.74 $ 1,529.80 702 US Bancorp 91159HHV5 Corporate Bond 12/24/2019 1,000,000.00 1,049,040.00 1,003,078.28 1/5/2024 2.12% $ 71,343.75 $ 54,380.13 $ 1,834.37 523 FHLB 3133834G3 Gov. Agency Debenture 3/11/2021 1,400,000.00 1,460,522.00 1,389,660.92 6/9/2023 0.19% $ 37,022.22 $ 3,664.98 $ 238.69 313 FFCB 3133EKQA7 Gov. Agency Debenture 10/21/2019 1,000,000.00 1,019,780.00 981,794.31 9/10/2024 1.66% $ 49,631.11 $ 45,130.78 $ 1,423.25 772 PNC Financial 69349LAM0 Corporate Bond 2/7/2022 1,000,000.00 1,033,470.00 1,005,428.34 6/25/2023 1.49% $ 17,733.33 $ 5,372.34 $ 1,164.63 329 FHLB 3135G05X7 Gov. Agency Debenture 6/10/2022 1,200,000.00 1,102,952.40 1,112,130.08 1,312.50 8/25/2025 3.04% $ (1,312.50) $ 1,902.68 $ 2,949.15 1121 Treasury 912828ZL7 Gov. Agency Debenture 4/12/2022 1,700,000.00 1,583,927.57 1,589,167.97 4/30/2025 2.72% $ 316.99 $ 9,611.14 $ 3,771.46 1004 JP Morgan Chase 46625HJT8 Corporate Bond 9/23/2019 1,400,000.00 1,485,414.00 1,416,853.45 2/1/2024 2.39% $ 127,788.89 $ 96,022.89 $ 2,944.32 550 American Honda 02665WDH1 Corporate Bond 2/14/2020 600,000.00 603,756.00 594,901.12 5/10/2023 1.75% $ 28,145.00 $ 25,034.14 $ 895.11 283 Treasury 912828V23 US Treasury Note 11/29/2021 1,000,000.00 1,032,933.04 989,960.94 12/31/2023 0.66% $ 13,206.52 $ 3,924.44 $ 571.16 518 Treasury 91282CBE0_2 Gov. Agency Debenture 10/7/2021 1,000,000.00 994,768.98 959,843.75 1/15/2024 0.36% $ 964.67 $ 2,587.41 $ 301.54 533 FHLB 3130ALH98 Gov. Agency Debenture 2/26/2021 1,000,000.00 997,610.00 961,515.73 2/26/2024 0.33% $ 2,500.00 $ 4,416.63 $ 279.99 575 Treasury 912828M80 US Treasury Note 7/22/2019 1,000,000.00 1,006,175.23 997,656.25 11/30/2022 1.81% $ 57,158.47 $ 53,444.10 $ 1,542.61 122 Treasury 912828U57 US Treasury Note 7/31/2019 1,000,000.00 1,011,875.00 989,335.94 11/30/2023 1.84% $ 60,208.33 $ 54,014.24 $ 1,572.25 487 Treasury 912828X70 US Treasury Note 12/30/2019 1,000,000.00 1,010,589.29 983,945.31 4/30/2024 1.75% $ 51,703.30 $ 48,922.73 $ 1,661.12 639 Treasury 912828XT2 US Treasury Note 10/31/2019 1,000,000.00 1,015,667.41 983,750.00 5/31/2024 1.64% $ 51,639.34 $ 44,208.50 $ 1,408.49 670 American Honda 02665WCQ2 Corporate Bond 9/14/2021 950,000.00 1,012,871.00 955,372.65 10/10/2023 0.41% $ 19,705.90 $ 3,232.93 $ 346.79 436 FFCB 3133EJ3Q0 Gov. Agency Debenture 8/28/2019 1,500,000.00 1,587,503.75 1,499,882.07 12/21/2023 2.12% $ 121,348.96 $ 64,945.24 $ 1,941.47 508 Freddie Mac 3133EKKT2 Gov. Agency Debenture 6/24/2019 1,550,000.00 1,573,188.00 1,545,814.19 2/8/2023 1.82% $ 100,168.75 $ 86,008.42 $ 2,419.47 192 Treasury 91282CBE0 Gov. Agency Debenture 9/15/2021 650,000.00 647,615.46 623,898.44 1/15/2024 0.28% $ 675.62 $ 1,447.14 $ 155.77 533 Subtotal $ 45,750,000.00 $ 46,361,475.28 $ 44,952,529.50 $ 1,312.50 $ 1,605,745.55 $ 1,264,485.51 $ 52,175.54 BNY MM Money Market 292,775.99 292,775.99 0.00% 1
LAIF State Investment Pool 6,918,398.79 6,918,398.79 1.09% 7,932.22 1 $53,572,650.06 $52,163,704.28 $ 1,605,745.55 $ 1,264,485.51 $ 60,107.76 Matured Assets
Total Investments "Matured" $ -
Total Interest FY 20_21 Matured and Current $ 60,107.76 Maturity Profile Amount
0-1 year $20,773,480.50
1-2 years $27,094,509.59
2-3 years $4,601,707.57
3-5 years $ 1,102,952.40
$53,572,650.06
Amortized
Institution Cost
BNY Assets $46,361,475.28
BNY MM 292,775.99
LAIF 6,918,398.79
Totals: $53,572,650.06
Market to Cost Position Report

PREPARED BY: WooJae Kim
Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/15/2022
ITEM NO: 9
DATE: November 8, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve the Assignment of the North 40 Market Hall Transportation Demand Management Agreement from SummerHill N40 LLC to Yuki Farms, a California General Partnership
RECOMMENDATION:

Approve the assignment of the North 40 Market Hall Transportation Demand Management (TDM) Agreement from SummerHill N40 LLC to Yuki Farms, a California general partnership.

BACKGROUND:

On August 1, 2017, the Town Council approved the planning application for Phase 1 of the North 40 Specific Plan. The Phase 1 planning application was approved with conditions of approval, including the requirement for a TDM Program and Plan to reduce vehicle miles travelled to and from the site with a target goal of 15% daily trip reduction.

On August 18, 2020, the Town Council approved Resolution 2020-036 to authorize the Town Manager to execute the North 40 TDM Agreement for Market Hall with SummerHill (Attachment 1). The Market Hall Development includes approximately 20,761 square feet of commercial space with 2,772 square feet of community space, which is referred to collectively as the “Market Hall Commercial Condo.” The Market Hall Development also includes 50 affordable senior housing units and a garage structure, which are separate from Market Hall Commercial Condo.

PAGE 2 OF 3
SUBJECT: Approve the Assignment of the North 40 Market Hall Transportation Demand Management Agreement from SummerHill N40 LLC to Yuki Farms, a California General Partnership
DATE: November 8, 2022
DISCUSSION:

The North 40 TDM Agreement for Market Hall established an annual contribution amount to the TDM Program for the Market Hall Commercial Condo, which would be adjusted annually by the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index for All Urban Consumers (CPI). TDM Program and fees shall continue in perpetuity or until the Town acts to cancel the TDM Program.

The TDM Agreement for Market Hall allows for SummerHill to assign the TDM program responsibilities and requirements to the future Market Hall Commercial Condo owner. The TDM Agreement further provides that SummerHill shall give written notice of such assignment to the Town, and any assignment shall be considered for approval by the Town. The TDM Agreement and case law require that the Town’s approval not be unreasonably withheld. In this instance, there are no grounds on which to deny approval of the assignment. Once the TDM Agreement has been assigned, the annual payments will be made by the assignee, which is Yuki Farms.

SummerHill has provided the Town with notice of its intent to assign the TDM Agreement to Yuki Farms. Staff has reviewed the proposed Assignment and Assumption of North 40 TDM Agreement for Market Hall (Attachment 2) and recommends that the Town Council approve the assignment.

CONCLUSION:

Staff recommends that the Town Council approve the assignment of the North 40 Market Hall Transportation Demand Management Agreement from SummerHill N40 LLC to Yuki Farms, a California General Partnership.

COORDINATION:

This memorandum has been coordinated with the Town Attorney.

FISCAL IMPACT:

There is no fiscal impact to this item. The TDM payments required in the original TDM agreement will be made by a new entity.

PAGE 3 OF 3
SUBJECT: Approve the Assignment of the North 40 Market Hall Transportation Demand Management Agreement from SummerHill N40 LLC to Yuki Farms, a California General Partnership
DATE: November 8, 2022
ENVIRONMENTAL ASSESSMENT:

This item is not a project defined under the California Environmental Quality Act, because it can be seen with certainty that it will not impact the physical environment [CEQA Guidelines Section 15061(b)(3)].

Attachments:

1. North 40 Transportation Demand Management Agreement (Market Hall)

2. Assignment and Assumption of North 40 TDM Agreement (Market Hall)

Attachment 1 Page 206

RECORDING REQUESTED BY AND
WHEN RECORDED, MAIL TO:

SummerHill N40 LLC
777 California Avenue
Palo Alto, California 94301
Attn: General Counsel
(SPACE ABOVE THIS LINE RESERVED FOR
RECORDER’S USE)
ASSIGNMENT AND ASSUMPTION OF NORTH 40

TRANSPORTATION DEMAND MANAGEMENT AGREEMENT (MARKET HALL) THIS ASSIGNMENT AND ASSUMPTION OF NORTH 40 TRANSPORTATION DEMAND MANAGEMENT AGREEMENT (MARKET HALL) (“Assignment”) is made and entered into on this ____ day of ________________, 2022, by and between SUMMERHILL N40 LLC, a California limited liability company (“Assignor”) and YUKI FARMS, a California general partnership (“Assignee”).

RECITALS
A. Assignor was the owner of that certain real property located in the Town of Los Gatos (“Town”), County of Santa Clara (the “County”), State of California, generally known and described as the Market Hall Unit, as described in that certain Condominium Plan, Market Hall, Tract 10441, North 40, Los Gatos, California, and more particularly described on Exhibit A attached hereto (the “Property”).

B. Assignor and the Town entered into that certain North 40 Transportation Demand Management Agreement (Market Hall) recorded in the Official Records of the County on September 28, 2020 as Instrument No. 24632514 (“TDM Agreement”).

C. Pursuant to the terms of the Real Estate Purchase and Sale Agreement and Joint Escrow Instructions by and between Assignor and Assignee with an Effective Date of August 31, 2021 (“Purchase Agreement”), Assignor has conveyed and transferred the Property to Assignee.

D. Assignor desires to assign, and Assignee desires to assume, Assignor’s rights, duties and obligations under the TDM Agreement. Capitalized terms used in this Assignment but not defined herein shall have the meaning given such terms in the TDM Agreement.

NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt of which is hereby acknowledged, Assignor and Assignee agree as follows:

Attachment 2 Page 215

1. Assignment of Rights and Obligations. Subject to the terms and conditions of this Assignment, as of the Effective Date (hereinafter defined), Assignor hereby assigns, transfers and grants to the Assignee, and its successors and assigns, all of Assignor’s right, title, interest, obligations, duties and responsibilities under the TDM Agreement which accrue, arise or are required to be performed from and after the Effective Date, including, without limitation, the obligation to pay the TDM Contribution to the Town, as set forth in the TDM Agreement (collectively, the “Rights and Obligations”).

2. Assumption of Rights and Obligations. Assignee, for itself and its successors and assigns, hereby accepts such assignment and assumes all of the Rights and Obligations under the TDM Agreement which accrue, arise or are required to be performed from and after the Effective Date. Assignee agrees, expressly for the benefit of the Town, to comply with, perform and execute all the covenants and obligations of “SummerHill” under the TDM Agreement which accrue, arise or are required to be performed from and after the Effective Date, it being the express intention of both the Assignor and the Assignee that, from and after the Effective Date of this Assignment, the Assignee shall become substituted for the Assignor as “SummerHill” under the Agreement. From and after the Effective Date, Assignor shall be released from all Rights and Obligations under the TDM Agreement which accrue, arise or are required to be performed from and after the Effective Date.

3. Effective Date. The effective date of this Assignment shall be the date of the transfer of record title to the Property to Assignee.

4. Miscellaneous.

4.1 Successors and Assigns. All of the covenants, terms, and conditions of this Assignment shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns.

4.2 Counterparts. This Assignment may be executed in one or more counterparts, and each counterpart shall be deemed to be an original document. All executed counterparts together shall constitute one and the same document, and the signature pages shall be assembled to form a single original document.

4.3 Governing Law. This Assignment shall be governed by the laws of the State of California.

4.4 Notices. The notices address for “SummerHill” pursuant to Section 11 of the Agreement shall be as follows:

If to SummerHill: Yuki Farms
15495 Los Gatos Boulevard, Suite 11
Los Gatos, CA 95032
Attn: Ed Morimoto
Harmonie Park Development
221 Bachman Avenue
Los Gatos, CA 95030

Attn: Don Capobres and Wendi Baker
Kennedy, Archer & Giffen
24591 Silver Cloud Court, Suite 200
Monterey, CA 93940
Attn: Nolan M. Kennedy

4.5 Severability. If any provision of this Assignment is held invalid, the remainder of this Assignment shall not be affected, except as necessarily required by the invalid provisions, and shall remain in full force and effect unless amended or modified by mutual consent of the parties.

4.6 Valid Signatures. The undersigned is duly authorized to sign, acknowledge and deliver this Assignment on behalf of the undersigned, and no other signatures are required or necessary in connection with the execution and validity of this Assignment. [Signatures on Next Page]

IN WITNESS HEREOF, the parties hereto have executed this Assignment as of the day and year first above written.

ASSIGNOR:

SummerHill N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company,
its Manager
By: ____________________
Name: ____________________
Title: ____________________
By: ____________________
Name: ____________________
Title: ____________________
ASSIGNEE:

Yuki Farms, a California general partnership
By: Morimoto Family Trust dated September 17, 1998,
Its authorized general partner
By: ______________________
Edward S. Morimoto, Trustee

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On before me, ,
personally appeared
, who proved to
me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________________ (Seal)

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of )
On before me, ,
personally appeared
, who proved to
me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________________ (Seal)

EXHIBIT A

LEGAL DESCRIPTION
PARCEL NO. 1
A condominium consisting of: (1) a separate interest in the “Market Hall Unit” as shown on the Condominium Plan (the “Plan”) recorded on November 1, 2022, as Document No. 2022-25395000 in the records of Santa Clara County, California, and as further described in the Market Hall Declaration of Restrictions (CC&Rs) recorded on _________________, as Document No. ______________in Santa Clara County, California, and any amendments and annexations thereto (the “Declaration”); and (2) an undivided equal interest in the Common Area as described in the Plan and the Declaration, which condominium is located on the real property described on the map entitled “Tract 10441” (the “Map”) recorded on October 11, 2018, in Book 918 of Maps at pages 4 through 18, in the records of Santa Clara County, California.

RESERVING THEREFROM THE FOLLOWING:
(i) The exclusive right to use all of those areas designated as “Exclusive Use Common Area” as described in the Declaration and Plan set aside and allocated for the exclusive use of the Owners of Condominiums other than the Condominium described in Parcel No. 1, above; and
(ii) Easements and rights for use, enjoyment, access, ingress, egress, encroachment, maintenance, repair, replacement, drainage, support, and other purposes as described in the Declaration.

SUBJECT TO:

Nonexclusive rights of ingress, egress and support through the Common Area.

PARCEL NO. 2
Nonexclusive rights of ingress, egress and support in, through and over the Common Area.

PARCEL NO. 3
An exclusive right to use the area(s) designated as Exclusive Use Common Area(s) that are appurtenant to Parcel No. 1 above as described in the Declaration and the Plan.

PREPARED BY: Heather St. John
Senior Administrative Analyst
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/15/2022
ITEM NO: 10
DATE: November 4, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Accepting Funds from the California Supplemental Law Enforcement Service Fund (SLESF)
RECOMMENDATION:

Adopt a Resolution accepting funds from the California Supplemental Law Enforcement Service Fund (SLESF).

BACKGROUND:

In 1996, California legislation (Assembly Bill 3229) created the Citizens Options for Public Safety (COPS) program allocating $100,000,000 to local governments yearly for front-line law enforcement. These funds are to be distributed through an established local Supplemental Law Enforcement Services Fund (SLESF). State General Fund distribution to local law enforcement agencies are specifically intended for “front-line municipal police services.” COPS funds must be spent on personnel, equipment, or supplies and are not approved for public safety capital improvement or construction projects.

Other COPS funds requirements and restrictions include:
 COPS funds shall be used to supplement, not supplant existing funding for law enforcement services
 COPS funds shall be deposited into a separate fund, not intermingled with other monies  The Town Council shall approve the appropriation of COPS funds pursuant to a recommendation by the Chief of Police
 Each county shall establish a Supplemental Law Enforcement Services Fund for deposit of State COPS funds and distribution to municipalities

PAGE 2 OF 3
SUBJECT: Adopt a Resolution Accepting Funds from the California Supplemental Law Enforcement Service Fund (SLESF)
DATE: November 4, 2022
BACKGROUND (continued):

Pursuant to AB 3229, the City of Monte Sereno also receives a share of the state SLESF funds ($100,000). The City of Monte Sereno is required by contractual agreement for law enforcement services to transfer those funds to the Town of Los Gatos within 30 days of receipt of the monies from the State of California. The contract stipulates that the Los GatosMonte Sereno Police Department will provide an additional 416 hours of traffic enforcement within the city limits of Monte Sereno in exchange for its portion of SLESF funds.

DISCUSSION:

This report recommends the use of SLESF funds continue in the spirit of the COPS program. The Police Department proposes utilizing the Los Gatos portion ($100,000) of SLESF funds in Fiscal Year (FY) 2022/23 for frontline Police operational equipment and services, which includes but is not limited to data management and storage of secure digital evidence, technology equipment which increase operational efficiencies and crime reduction strategies; and ($100,000) of SLESF funds be directed toward the contractually required traffic enforcement within the city limits of Monte Sereno. For Los Gatos, the proposed use SLESF created budget savings in the adopted FY 2022/23 Operating Budget.

CONCLUSION:

Staff recommends approval of a resolution (Attachment 1) to use of SLESF funds as follows:
 $100,000 of SLESF funds will be directed to frontline police operations and services  $100,000 of SLESF funds will be directed toward the contractually required traffic enforcement within the city limits of Monte Sereno FISCAL IMPACT:

If Council approves the proposed recommendation, the Town will continue to receive a combined total of $200,000 in SLESF funding. Per contract stipulation with the City of Monte Sereno, $100,000 of SLESF funds will continue being directed toward additional traffic enforcement within the city limits of Monte Sereno. The remaining $100,000 of Town SLESF funds will be redirected toward frontline Police operations and services as described above.

PAGE 3 OF 3
SUBJECT: Adopt a Resolution Accepting Funds from the California Supplemental Law Enforcement Service Fund (SLESF)
DATE: November 4, 2022
ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachments:

1. Draft resolution authorizing use of SLESF funds

1 of 2
Draft Resolution Date

DRAFT RESOLUTION

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ACCEPTING

SUPPLEMENTAL LAW ENFORCEMENT SERVICE FUNDS (SLESF) GRANT ALLOCATION FOR FY 2022-23 AND APPROVING USE OF THE FUNDS
WHEREAS, Government Code Section 30061(b)3 was amended with the Governor's approval of Assembly Bill 3229; and
WHEREAS, the Town of Los Gatos is entitled to receive approximately $100,000 under the terms of the Supplemental Law Enforcement Services Fund if specified requirements are met as well as $100,000 from the City of Monte Sereno under the terms of the fund; and WHEREAS, the State funding cannot be used to supplant current Town costs for law enforcement and must be expended exclusively for front-line police services; and WHEREAS, the Town Council has considered the written request separate and apart from the allocation of general funds for police services; NOW, THEREFORE, BE IT RESOLVED: by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos authorize the continued expenditure of funds from the Supplemental Law Enforcement Services Fund for 416 hours of traffic enforcement within the city limits of Monte Sereno; and has determined an expenditure plan that supports police operations and services for the Town of Los Gatos.

BE IT FURTHER RESOLVED,

1. The Town Manager is directed to continue the Supplemental Law Enforcement Services Fund (SLESF) within the Town for receipt and disbursement of money received from the County Supplemental Law Enforcement Services Fund.

2. The Town Manager is directed to promptly remit to the General Fund all funding deposited in such SLESF fund.

ATTACHMENT 1

2 of 2
Draft Resolution Date
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the _____ day of _____ 2022 by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

PREPARED BY: Ryan Safty
Associate Planner
Reviewed by: Assistant Town Manager, Town Attorney, and Public Works Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/15/2022
ITEM NO: 11
DATE: November 10, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider Adoption of a Resolution Establishing Objective Standards for Qualifying Multi-Family and Residential Mixed-Use Developments.

Location: Town-wide. Applicant: Town of Los Gatos.

RECOMMENDATION:

Consider adoption of a resolution establishing Objective Standards for qualifying multi-family and residential mixed-use developments.

BACKGROUND:

The Town of Los Gatos has developed Draft Objective Standards (Attachment 1) for the review of qualifying multi-family and mixed-use development applications. This effort is in response to State legislation [Senate Bill (SB) 167, SB 35, and SB 330] requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects such as multi-family and residential mixed-use developments. Objective standards are defined under State law as, “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4).

The purpose of adopting objective standards is to:
 Comply with recent State housing legislation;
 Implement streamlined and ministerial review processes for qualifying housing projects;  Ensure that these qualifying projects align with the Town’s expectations and vision to maintain and support the character of the Town;
 Provide a set of clear criteria to guide development; and  Establish an objective framework by which a qualifying project will be evaluated.

PAGE 2 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
BACKGROUND (continued):

On November 5, 2019, the Town Council adopted Resolution 2019-053 (Exhibit 1 of Attachment 5) to authorize application for, and receipt of, SB 2 Planning Grant Program funds, including execution of an agreement with the California Department of Housing and Community Development (HCD) by the Town Manager. Planning staff submitted an application with a proposal to develop objective standards for the review of qualifying housing development applications. The Town received approval of the application and entered into an agreement with HCD to receive reimbursable grant funding for the proposed scope of work.

On November 20, 2020, staff released a request for qualifications (RFQ) to provide services for preparation of objective standards for the review of qualifying housing development applications as provided in the Town of Los Gatos SB 2 Planning Grant Program application.

Staff received proposals from four firms. After reviewing the submittals and conducting interviews, staff concluded that M-Group planning consultants provided the best fit, capacity, and professional expertise for the proposed scope of work. On March 16, 2021, the Town Council authorized the Town Manager to execute an agreement with M-Group for the proposed scope of work.

The project initiation phase included review of State legislation and existing Town guidelines and standards, and collation of feedback received during five meetings with the Planning Commission subcommittee between July and December 2021. On February 22, 2022, staff conducted the first of two community engagement meetings to gather feedback from residents and stakeholders. On May 12, 2022, a preliminary draft of the objective standards was presented and discussed at a second community engagement meeting. A summary of the feedback received at the community engagement meetings is included as Exhibit 2 of Attachment 5. Based on the feedback from the Planning Commission subcommittee and the community, staff and M-Group developed Draft Objective Standards for consideration by the Planning Commission (Exhibit 3 of Attachment 5).

On June 22, 2022, the Planning Commission received and considered public comments on the Draft Objective Standards, reviewed the document, and provided input to staff on recommended modifications (see Verbatim Minutes in Attachment 8). The item was continued to a future meeting to allow staff time to prepare responses to the input received and to prepare a revised Draft Objective Standards document.

PAGE 3 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
BACKGROUND (continued):

On August 24, 2022, the Planning Commission received and considered public comments on the revised Draft Objective Standards (Exhibit 9 of Attachment 9). A representative from the local architect community was present and provided verbal comments on the Draft Objective Standards. The item was continued to a future meeting to allow the architect community time to prepare written comments on the Draft Objective Standards document for Planning Commission consideration (see Verbatim Minutes in Attachment 12). Staff met with the group of local architects on September 1, 2022, to answer questions and facilitate input.

On September 14, 2022, the Planning Commission received and considered public comments on the latest Draft Objective Standards, as well as written comments from the local architect community (Exhibit 16 of Attachment 13). Staff provided written responses to the public comments and architect comments within and attached to the Addendum Report for Planning Commission’s consideration (Exhibit 19 of Attachment 14). Planning Commission discussed the written comments and staff’s responses, and suggested edits in their recommendation of approval to Town Council (see Verbatim Minutes in Attachment 15).

DISCUSSION:

On September 14, 2022, the Planning Commission conducted a public hearing, listened to testimony, and reviewed and discussed each of the public comments, architect comments, and previous Commissioner comments received throughout this process. The Planning Commission made several recommendations based on these comments, which are summarized below and incorporated into the revised Draft Objective Standards document (Attachment 1). The drafted edits based on Planning Commission direction are shown in track changes in Attachment 2. The recommendations are summarized in the order that they appear in the document.

A. Introduction
The Introduction section of the Draft Objective Standards document includes the Purpose and Applicability, Organization, and Key Terms sections. Based on the Planning Commission recommendation, staff incorporated each of these within the revised Draft Objective Standards document as described below:

Purpose and Applicability. Comments were received from the public regarding the organization of the Purpose and Applicability section and the reference to the California Government Code Section 65559.5 definition of qualifying housing development projects.

Staff incorporated the suggested edit in the revised document. Additionally, the local architect community requested that clarification be added, specifying that these objective standards are only to be used for review of qualifying projects, and not all discretionary applications. Staff incorporated this at the end of the Purpose and Applicability section.

PAGE 4 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
DISCUSSION (continued):

Key Terms. Comments were received regarding several of the definitions provided in the Key Terms section of the document. The Draft Objective Standards document was amended as follows:
 Addition of a definition of Objective Design Standards;  Separation of Community Recreation Space into two sections to better differentiate the requirements for mixed-use developments and multi-family developments;  Separation of Private Recreation Space into two sections to better differentiate the requirements for mixed-use developments and multi-family developments;  Amendment of the Private Recreation Space definitions, requiring that they be accessible from the dwelling unit; and
 Amendment of Mixed-Use to specify that residential uses need to be included in at least two thirds of the building square footage.

B. Site Standards
The Site Standards section of the Draft Objective Standards document includes objective standards for: site layout and building placement; vehicular access and parking; and outdoor areas and amenities. Based on the Planning Commission recommendation, staff incorporated each of these within the revised Draft Objective Standards document as described below:

A.1 – Pedestrian Access. Comments were received from the public regarding the minimum width of pedestrian pathways, as well as the minimum six-inch grade separation requirement for pedestrian pathways that intersect vehicular drive aisles. Draft Standard A.1.1 was amended to specify that pedestrian pathways must be a minimum of four feet in width. Draft Objective Standard A.1.2 was amended to exempt the six-inch grade separation of pedestrian pathways when they intersect drive aisles.

A.3 – Vehicular Access. Comments were received from the public questioning the difference between the vehicular access standards in A.3.1 and A.4.2. The intent of the two standards is the same: to require parking lots to be internally connected: and prohibiting use of a public street to access two different parking areas. Standard A.3.1 was amended to incorporate A.4.2, and A.4.2 was deleted.

A.4 – Parking Location and Design. Public comment was received requesting that previous standard A.4.4 (carport location) be moved under A.4.1 (parking lot location). Draft Objective Standard A.4.1 was amended to include A.4.4, specifying that parking lots and carports shall not be located between the primary building frontage and the street, and A.4.4 was deleted.

PAGE 5 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
DISCUSSION (continued):

A.5 – Parking Structure Access. Public comment was received regarding the parking structure automobile entry gate setback requirement of 25 feet from the back of the sidewalk in A.5.1. Planning Commission recommended that this standard be reduced to 18 feet, similar to Town Code standard 29.40.0315(c)(3), which requires 18 feet from the edge of the adjacent street. This was incorporated in the Draft Objective Standard document.

A.6 – Utilities. Public comment was received requesting that the utility screening requirements for rooftop and ground utilities in A.6.3 be separated. This was incorporated in the Draft Objective Standard document with a new A.6.4 for rooftop equipment.

Additionally, further clarification was added, specifying that wall and fence heights within the front and street-side setbacks must comply with Town Code.

A.10 – Landscape, Private, and Community Recreation Spaces. Several public comments were received regarding the landscaping, private recreation space, and community recreation space requirements. Specifically, there were requests to allow landscaping within community recreation areas to count towards both requirements, to reduce the size of both private and community recreation spaces, and to eliminate the community recreation space requirement for smaller developments. Based on Planning Commission’s recommendation and staff’s analysis of other jurisdiction requirements, Draft Objective Standard A.10 was amended as follows:
 Allowance of landscaped areas within community recreation spaces to contribute to the required minimums for both landscaped area and community recreation space;  Reduction of the private recreation space size requirement for a ground floor unit from 200 square feet to 120 square feet;
 Reduction of the private recreation space size requirement for above ground floor units from 120 square feet to 60 square feet;
 Reduction of the minimum dimensions for private recreation space from 10 feet by six feet to six feet in both directions;
 Reduction of the community recreation space requirement from 200 square feet for each unit to 100 square feet; and
 Addition of a provision that if the development includes four or less residential units, the community recreation space requirement is waived.

A.11 – Building Placement. Public comment was received questioning if the setback standard in A.11.1 applies to the entire site or just building footprints, and a request that the maximum percentage of ground-floor site amenities be removed in A.11.2. Planning Commission supported these requests, and the Draft Objective Standards document was amended as follows:

PAGE 6 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
DISCUSSION (continued):
 Amendment of Draft Objective Standard A.11.1 to clarify that the 75 percent continuous frontage requirement applies to the amount of the ground floor streetfacing façade;  Replacement of the term “Community Growth District” with “commercial zones” based on the current status of the General Plan Land Use Element; and  Amendment of Draft Objective Standard A.11.2 to remove the maximum percentage that site amenities can occupy within the area between the building and the street.

C. Building Standards
The Building Standards section of the Draft Objective Standards document includes objective standards for: building form and massing; façade articulation; materials; and roof design. Based on the Planning Commission recommendation, staff incorporated each of these suggestions within the revised Draft Objective Standards document as described below:

B.1 – Massing and Scale. Comments were received from the public regarding Standard B.1:
questioning if B.1.1 applies to each individual primary building fronting the street, or the combined façade area; questioning if B.1.1.c applies to the façade plane or the front door and requesting clarification on whether awnings can project beyond this plane; requesting that a sliding scale for arcade requirements be implemented in B.1.1.d; and questioning the drawing of a “courtyard” in Figure B.1.1.e. The Draft Objectives Standards document was amended to incorporate each of these comments, as follows:
 Clarification to B.1.1 was provided, specifying that the standard applies to the combined façade area of all primary buildings;
 Clarification to B.1.1.c was provided, specifying that the standard applies to the façade plane of an entry and that a covered entry can extend beyond this façade plane;
 Amendment of B.1.1.d, with a sliding scale added with different requirements on the amount of arcade depending on the length of the building; and  Replacement of the term “courtyard” with “open area” in standard B.1.1.e.

B.2 – Parking Structure Design. A public comment was received regarding Standard B.2.2, regulating the façade openings on upper levels of parking structures. The previous standard included a maximum screening percentage of 30 percent, but no minimum. Standard B.2.2 was revised to include a minimum 10 percent standard.

PAGE 7 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
DISCUSSION (continued):

B.3 – Roof Design. Public comment was received regarding Figures B.3.1 and B.3.3. There were concerns that the alternative roof forms shown in B.3.1 would lead to confusion; and therefore, this figure was removed. There was also concern that the dormers shown in Figure B.3.3 read more as gables; and therefore, this figure was revised to show dormers within the roof form.

B.4 – Façade Design and Articulation. Comments were received regarding the: individual design options (a-f) for buildings greater than two-stories contained in Standard B.4.1; the specificity of the architectural solutions listed in Standard B.4.3; and the privacy requirements for balconies and rooftop decks in B.4.10 and B.4.11. Based on the public comment and Commissioner recommendations, Standard B.4.1 was amended as follows:
 Deletion of B.4.1.d (belly bands and horizontal architecture elements);  Amendment of B.4.1.f (B.4.1.e in the updated document), to specify that the exterior façade height of the upper floor must be a minimum of two-feet taller than the floor immediately below, and not the internal floor-to-ceiling height;  Amendment of B.4.3, clarifying the amount and type of each architectural solution required;
 Amendment of B.4.10, to allow rooftop and upper floor terraces when abutting single-family when no part of the rooftop or upper floor terrace or deck is closer than five feet from the façade plane below to prevent views into adjacent residential uses; and
 Amendment of B.4.11, to no longer allow balconies facing existing residential uses.

D. Appendix – Evaluation of Existing Developments
The Planning Commission discussed the idea of including example design images throughout the document to make these standards easier to understand. The Planning Commission recommended that an appendix be included at the end of the document with example images of developments in Town that comply with the more complex standards in Section B – Building Standards. Staff has incorporated this appendix in Attachment 3, with an analysis of three different developments in the Town in relation to Standards B.1.1, B.4.1, and B.4.3.

PAGE 8 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
PUBLIC OUTREACH:

Public input has been requested through the following media and social media resources:
 An eighth-page public notice in the newspaper;
 A poster at the Planning counter at Town Hall and the Los Gatos Library;  Email to interested parties;
 Community Meetings;
 In-person meeting with local architect community;
 The Town’s website home page, What’s New;
 The Town’s Facebook page;
 The Town’s Twitter account;
 The Town’s Instagram account; and
 The Town’s NextDoor page.

Issues raised by the public are identified in the Discussion section of this report.

PUBLIC COMMENT:

Attachment 16 includes additional public comment received between 11:01 a.m., Wednesday, September 14, 2022, and 11:00 a.m., Thursday, November 10, 2022.

CONCLUSION:

Staff recommends that the Town Council adopt a resolution to approve and adopt the Objective Standards document (Attachment 4), with findings that the project is not subject to the California Environmental Quality Act [Section 15061(b)(3)] and is consistent with the General Plan; and includes any specific changes agreed upon by the majority of the Town Council.

ALTERNATIVES:

Alternatively, the Council may:

1. Continue this item to a date certain with specific direction to staff;

2. Refer the item back to the Planning Commission with specific direction; or

3. Take no action, and proceed without Objective Standards to regulate qualifying projects.

PAGE 9 OF 9
SUBJECT: Objective Standards
DATE: November 10, 2022
ENVIRONMENTAL ASSESSMENT:

The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, Section 15061(b)(3), in that it can be seen with certainty that there is no possibility that the proposed objective standards will have a significant effect on the environment.

Attachments:

1. Draft Objective Standards

2. Draft Objective Standards with Changes Red-Lined

3. Appendix for Draft Objective Standards – Evaluation of Existing Developments

4. Draft Resolution with Exhibit 1

5. June 22, 2022 Planning Commission Staff Report with Exhibits 1-4

6. June 22, 2022 Planning Commission Addendum Report with Exhibits 5-7

7. June 22, 2022 Planning Commission Desk Item Report with Exhibit 8

8. June 22, 2022 Planning Commission Verbatim Minutes

9. August 24, 2022 Planning Commission Staff Report with Exhibits 9-12

10. August 24, 2022 Planning Commission Addendum Report with Exhibit 13

11. August 24, 2022 Planning Commission Desk Item Report with Exhibits 14-15

12. August 24, 2022 Planning Commission Verbatim Minutes

13. September 14, 2022 Planning Commission Staff Report with Exhibits 16-18

14. September 14, 2022 Planning Commission Addendum Report with Exhibits 19-20

15. September 14, 2022 Planning Commission Verbatim Minutes

16. Public Comment received between 11:01 a.m., Wednesday, September 14, 2022, and 11:00 a.m., Thursday, November 10, 2022

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Los Gatos DRAFT Objective Design Standards November 15, 2022

TOWN OF LOS GATOS

DRAFT OBJECTIVE DESIGN STANDARDS
November 15, 2022

PURPOSE AND APPLICABILITY
The purpose of the Objective Design Standards is to ensure that new qualifying projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include well-designed amenities and outdoor areas to enhance community character.

These standards are intended to guide property owners, applicants, developers, and design professionals by providing clear design direction that enhances the Town’s unique character and ensures a high-quality living environment.

California Government Code Section 65559.5 identifies Qualifying Housing Development Projects to include:
 Multi-family housing developments;
 Residential Mixed-Use Housing developments with a minimum of two-thirds of the square footage designated for residential use;
 Supportive and transitional housing development.

A Qualifying Housing Development Project shall be approved through a streamlined, ministerial review process when the project complies with these Objective Design Standards as well as complying with all existing objective development regulations in the Town, including but not limited to the following:
 General Plan
 Town Code
 Guidelines and Standards for Land Use Near Streams
 Bicycle and Pedestrian Master Plan
 Parks and Public Works Standards
 Santa Clara County Fire Department Requirements
These standards are only to be used for review of qualifying projects where Town review, approval, and/or denial is limited to only objective standards. Many projects will proceed through the standard review process, in which case the objective standards included herein would not apply.

ORGANIZATION
The Objective Design Standards are organized into two primary sections: Site Standards; and Building Standards. The Site Standards section includes objective standards for site layout and building placement; vehicular access and parking; and outdoor areas and amenities. The Building Standards section includes objective standards for building form and massing; façade articulation; materials; and roof design.

ATTACHMENT 1

Los Gatos DRAFT Objective Design Standards November 15, 2022

KEY TERMS
Community recreation space in Residential Mixed-Use developments means public gathering spaces, such as: plazas, outdoor dining areas, squares, pocket parks, or other community areas for the use of all residents and the business patrons and tenants.

Community recreation space in multi-family developments means gathering spaces, such as:
play areas, pool areas, patios, rooftop decks, or other community areas for the use of all residents.

Façade articulation means the division of a building façade into distinct sections; including the materials, patterns, textures, and colors that add visual interest to a building or façade.

Fenestration means the design, construction, and presence of any openings in a building, such as: windows, doors, vents, wall panels, skylights, curtain walls, and louvers.

Landscaping means an area devoted to plantings, lawn, ground cover, gardens, trees, shrubs, and other plant materials; excluding driveways, parking, loading, or storage areas.

Multi-family use means the use of a site for three or more dwelling units on the same site.

Objective Design Standards means development regulations that are measurable, verifiable, and knowable to all parties prior to submittal of a qualifying project. A planning review process based on objective standards involves streamlined ministerial review with no personal or subjective judgement by a public official.

Primary building means a building within which the principal or main use on a lot or parcel is conducted. Where a permissible use involves more than one building designed or used for the primary purpose on the subject property, each such building on the parcel shall be construed as constituting a primary building.

Private recreation space at ground level means an outdoor enclosed patio or deck accessible from a single dwelling unit.

Private recreation space above ground level means an outdoor balcony, terrace, or rooftop deck, accessible from a single dwelling unit.

Residential Mixed-Use means a development project where a variety of uses such as office, commercial, and institutional, are combined with residential use(s) in a single building or on a single site in an integrated project. Two thirds of the project square footage must be residential uses.

Transitional and supportive housing means a type of housing used to facilitate the movement of people experiencing homelessness into permanent housing and independent living.

Los Gatos DRAFT Objective Design Standards November 15, 2022 A. SITE STANDARDS
A.1. Pedestrian Access

1.1 All on-site buildings, entries, facilities, amenities, and vehicular and bicycle parking areas shall be internally connected with a minimum four-foot-wide pedestrian pathway or pathway network that may include use of the public sidewalk. The pedestrian pathway network shall connect to the public sidewalk along each street.

1.2 Pedestrian pathways within internal parking areas shall be separated from vehicular circulation by a physical barrier, such as a grade separation or a raised planting strip, of at least six inches in height and at least six feet in width. A pedestrian pathway is exempt from this standard where it crosses a parking vehicular drive aisle.

Figure A.1.2

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.2. Bicycle Access

2.1 Bicycle parking shall be located within 50 feet of at least one primary building entrance.

2.2 Multi-family residential buildings shall provide one bicycle parking space per dwelling unit.

2.3 Residential Mixed-Use projects shall provide one bicycle parking space per dwelling unit and one bicycle parking space per 2,000 square feet of nonresidential space.

A.3. Vehicular Access

3.1 Off-street parking lots shall have vehicular circulation using an internal vehicular network that preclude the use of a public street for aisle-to-aisle internal circulation.

Figure A.3.1

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.4. Parking Location and Design

4.1 Surface parking lots and carports shall not be located between the primary building frontage and the street.

4.2 Uncovered parking rows with at least 15 consecutive parking spaces shall include a landscape area of six feet minimum width at intervals of no more than 10 consecutive parking stalls. One tree shall be provided in each landscape area.

Figure A.4.2
A.5. Parking Structure Access

5.1 Any vehicular entry gate to a parking structure shall be located to allow a minimum of 18 feet between the gate and the back of the sidewalk to minimize conflicts between sidewalks and vehicle queuing.

5.2 A parking structure shall not occupy more than 50 percent of the building width of any street-facing façade, and it shall be recessed a minimum of five feet from the street-facing façade of the building.

5.3 For projects with five or more residential units and that have a vehicle access gate to the parking structure, a pedestrian gate shall also be provided.

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.6. Utilities

6.1 Pedestrian-oriented lighting shall be provided along all pedestrian paths in community recreation spaces. Exterior lighting fixtures shall be a minimum of three feet and a maximum of 12 feet in height. Light fixtures shall be placed along the pedestrian path at a spacing of no more than 30 linear feet.

6.2 Exterior lighting shall be fully shielded and restrain light to a minimum 30 degrees below the horizontal plane of the light source. Lighting shall be arranged so that the light will not shine directly on lands of adjacent residential zoned properties. Uplighting is prohibited.

Figure A.6.2

6.3 Street level views of ground level utility cabinets, mechanical equipment, trash, and service areas shall be screened from sight with landscape planting, fencing, or a wall, as allowed by the Town Code. The screening shall be at least the same height as the item being screened and screening that is not landscape material shall be constructed with one or more of the materials used on the primary building.

6.4 Rooftop mechanical equipment shall be screened from view from the street.

Solar equipment is exempt from this requirement.

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.7. Landscaping and Screening

7.1 At least 50 percent of the front setback area shall be landscaped.

7.2 A minimum 10-foot-wide landscape buffer shall be provided along the full length of the shared property line between multi-family or Residential Mixed-Use development and abutting residential properties. The buffer shall include the following:
a. A solid masonry wall with a six-foot height, except within a street-facing setback where walls are not permitted; and
Figure A.7.2a
b. Trees planted at a rate of at least one tree per 30 linear feet along the shared property line. Tree species shall be selected from the Town of Los Gatos Master Street Tree List and shall be a minimum 15-gallon size.

7.3 Surface parking lots shall be screened from view of the street with landscaping or a wall with a minimum three-foot height to screen the parking lot when not already screened by a primary building. When located in a street-facing setback, screening may not exceed a height of three feet.

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.8. Fencing

8.1 Fences, walls, and gates within required setbacks along all street frontages are prohibited unless used to screen on-site parking spaces from view from the street.

8.2 Chain link fencing is prohibited.

8.3 Perimeter barrier gates for vehicles and pedestrian entry gates shall have a maximum height of six feet.

8.4 Solid vehicular and pedestrian entry gates are prohibited. Entry gates shall be a minimum 50 percent open view.

A.9. Retaining Walls

9.1 Retaining walls shall not exceed five feet in height. Where an additional retained portion is necessary, multiple-terraced walls shall be used. Terraced walls shall set back at least three feet from the lower segment.

9.2 Retaining walls shall not run in a straight continuous direction for more than 50 feet without including the following:
a. A break, offset, or landscape pocket in the wall plane of at least three feet in length and two feet in depth; and
b. Landscaping at a minimum height of three feet at the time of installation along a minimum of 60 percent of the total length of the retaining wall.

A.10. Landscaped, Private, and Community Recreation Spaces

10.1 The landscaped, private, and community recreation spaces listed below are required for all qualifying projects. Community recreation spaces and private recreation spaces are calculated independent of each other. Landscaped areas within community recreation spaces can contribute to required minimums for both landscaped area and community recreation space.
a. Landscaped space: A minimum of 20 percent of the site area shall be landscaped.
b. Private recreation space: The minimum horizontal dimension is six feet in any direction and a minimum area of 60 square feet. The minimum vertical clearance required is eight feet. Private recreation space shall be directly accessible from the residential unit. Landscaped sections of private recreation space cannot count towards required landscaping requirements. i. Each ground floor dwelling unit shall have a minimum of 120 square feet of usable private recreation space.

Los Gatos DRAFT Objective Design Standards November 15, 2022 ii. Each dwelling unit above the ground floor shall have a minimum of 60 square feet of usable private recreation space. Where multiple balconies are provided for a single unit, the 60-square-foot minimum can be an aggregate of all balconies, provide each balcony meets the requirements for minimum horizontal dimensions.
c. Community recreation space: The minimum dimensions are 10 feet by six feet. A minimum of 60 percent of the community recreation space shall be open to the sky and free of permanent solid-roofed weather protection structures. Community recreation space shall provide shading for a minimum 15 percent of the community recreation space by either trees or structures, such as awnings, canopies, umbrellas, or a trellis. Tree shading shall be calculated by using the diameter of the tree crown at 15 years maturity. Shading from other built structures shall be calculated by using the surface area of the overhead feature.
i. Community recreation space shall be provided in Residential Mixed-Use developments at a minimum of 100 square feet per residential unit plus a minimum of two percent of the non-residential square footage. ii. Community recreation space shall be provided in multi-family residential development projects at a minimum of 100 square feet per residential unit.
iii. A project with four or less residential units is exempt from community recreation space requirements.
iv. Landscaped roof space can satisfy both required landscaping requirements and community recreation space requirements.

Landscaped roof space may not be used to satisfy more than 50 percent of the required landscaping for the site.

Los Gatos DRAFT Objective Design Standards November 15, 2022 A.11. Building Placement

11.1 To ensure buildings provide a continuous frontage along sidewalks, development in commercial zones shall place at least 75 percent of any ground floor street-facing façade on or within five feet of the setback line designated in the Town Code.

Figure A.11.1

11.2 A Residential Mixed-Use project with a ground-floor non-residential use shall provide site amenities on a minimum of 15 percent of the ground plane between the building and the front or street-side property line. The site amenities shall be comprised of any of the following elements:
a. Landscape materials or raised planters;
b. Walls designed to accommodate pedestrian seating, no higher than 36 inches;
c. Site furnishings, including fountains, sculptures, and other public art; or d. Tables and chairs associated with the ground floor use.

Los Gatos DRAFT Objective Design Standards November 15, 2022 B. BUILDING STANDARDS
B.1. Massing and Scale

1.1 Multiple-story building façades that face a street shall incorporate breaks in the building mass by implementing a minimum of three of the following solutions along the combined façade area of all primary buildings facing the street:
a. A minimum of 40 percent of the upper floor façade length shall step back from the plane of the ground-floor façade by at least five feet; Figure B.1.1a

Los Gatos DRAFT Objective Design Standards November 15, 2022 b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet;
Figure B.1.1b

Los Gatos DRAFT Objective Design Standards November 15, 2022 c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet. Where an awning or entry covering is provided, it can extend beyond the wall plane;
Figure B.1.1c
d. An exterior arcade that provides a sheltered walkway within the building footprint with a minimum depth of eight feet. For a façade 50 feet or greater, the arcade must be a minimum length of 65 percent of the full building façade; for a facade less than 50 feet, the arcade must be a minimum of 80 percent of the full building façade.

Los Gatos DRAFT Objective Design Standards November 15, 2022 Figure B.1.1d (1)
Figure B.1.1d (2)

Los Gatos DRAFT Objective Design Standards November 15, 2022 e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or
Figure B.1.1e

Los Gatos DRAFT Objective Design Standards November 15, 2022 f. Vertical elements, such as pilasters or columns, that protrude a minimum of one foot from the façade and extend the full height of the building base or ground floor, whichever is greater.

Figure B.1.1f

1.2 Upper floors above two stories shall be set back by a minimum of five feet from the ground-floor façade.

1.3 Townhomes or rowhouses shall have no more than six contiguous units in any single building.

Los Gatos DRAFT Objective Design Standards November 15, 2022 B.2. Parking Structure Design

2.1 The ground-floor façade of a parking structure facing a street or pedestrian walkway shall be fenestrated on a minimum of 40 percent of the façade.

2.2 Façade openings on upper levels of a parking structure shall be screened at a minimum 10 percent and up to 30 percent of the opening to prevent full transparency into the structure.

2.3 Parking structures facing a street and greater than 40 feet in length shall include landscaping between the building façade and the street, or façade articulation of at least 25 percent of the façade length. The façade articulation shall be implemented by one of the following solutions:
a. An offset of the façade plane with a depth of at least 18 inches for a minimum of eight feet in horizontal length; or
b. A different building material covering the entire façade articulation.

B.3. Roof Design

3.1 At intervals of no more than 40 feet along the building façade, horizontal eaves shall be broken using at least one of the following strategies:
a. Gables;
b. Building projection with a depth of a minimum of two feet; c. Change in façade or roof height of a minimum of two feet; d. Change in roof pitch or form; or
e. Inclusion of dormers, parapets, and/or varying cornices.

3.2 Skylights shall have a flat profile rather than domed.

Los Gatos DRAFT Objective Design Standards November 15, 2022

3.3 The total width of a single dormer or multiple dormers shall not exceed 50 percent of the total roof length at the street-facing façade. The dormer width shall be measured at dormer roof fascia, or widest part of the dormer.

Figure B.3.3

3.4 Carport roof materials shall be the same as the primary building.

Los Gatos DRAFT Objective Design Standards November 15, 2022 B.4. Façade Design and Articulation

4.1 Buildings greater than two stories shall be designed to differentiate the base, middle, and top of the building on any street-facing façade. Each of these elements shall be distinguished from one another using at least two of the following solutions:
a. Variation in building mass for a minimum of 60 percent of the length of the street-facing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
Figure B.4.1a

Los Gatos DRAFT Objective Design Standards November 15, 2022 b. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; Figure B.4.1b

Los Gatos DRAFT Objective Design Standards November 15, 2022 c. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing façade;
Figure B.4.1c

Los Gatos DRAFT Objective Design Standards November 15, 2022 d. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade, or
e. The upper floor shall implement a façade height that is a minimum of two feet greater than the façade height of the floor immediately below. The greater façade height shall be made evident by taller windows or arrangement of combined windows.

Figure B.4.1e

4.2 All façade materials, such as siding, window types, and architectural details, used on the street-facing façade shall be used on all other building façades.

Los Gatos DRAFT Objective Design Standards November 15, 2022

4.3 Variation in the street-facing façade planes shall be provided for buildings greater than one story by incorporating any combination of the following architectural solutions to achieve a minimum of 16 points:
 Architectural features, such as:
o Arcade or gallery along the ground floor; 8 points
o Awnings or canopies on all ground floor windows of
commercial space;
6 points
o Building cornice; 5 points
o Façade sconce lighting at a minimum of one light fixture per 15 linear feet.
3 points
 Bay or box windows projecting a minimum of 18 inches
from the façade plane and comprising a minimum of 20
percent of the fenestration on the upper floors of the
facade;
6 points
 Balconies or Juliet balconies provided on a minimum of 40 percent of the fenestration on the upper floors of the
facade;
5 points
 Landscaped trellises or lattices extending across a
minimum of 65 percent of any level of the facade;
5 points
 Materials and color changes; 3 points
 Eaves that overhang a minimum of two feet from the
facade with supporting brackets;
3 points
 Window boxes or plant shelves under a minimum of 60
percent of the fenestration on the upper floors of the
facade; or
3 points
 Decorative elements such as molding, brackets, or corbels. 3 points

4.4 Garage doors shall be recessed a minimum of 12 inches from the façade plane and along the street-facing façade shall not exceed 40 percent of the length of the building façade.

Los Gatos DRAFT Objective Design Standards November 15, 2022

4.5 Changes in building materials shall occur at inside corners.

Figure B.4.5

Los Gatos DRAFT Objective Design Standards November 15, 2022

4.6 A primary building entrance shall be provided facing a street or community recreation space. Additionally, all development shall meet the following requirements:
a. Pedestrian entries to ground-floor and upper-floor non-residential uses shall meet at least one of the following standards:
i. The entrance shall be recessed in the façade plane at least three feet in depth; or
ii. The entrance shall be covered by an awning, portico, or other architectural element projecting from the façade a minimum of three feet.

Figure B.4.6a

Los Gatos DRAFT Objective Design Standards November 15, 2022 b. For ground-floor commercial uses, façades facing a street shall include windows, doors, or openings for at least 60 percent of the building façade that is between two and 10 feet above the level of the sidewalk.

Figure B.4.6b

4.7 Pedestrian entries to buildings shall meet minimum dimensions to ensure adequate access based on use and development intensity. Building entries inclusive of the doorway and the facade plane shall meet the following minimum dimensions:
a. Individual residential entries: five feet in width
b. Single entry to multiple residential unit building, including Residential MixedUse buildings: eight feet in width c. Storefront entry: six feet in width

Los Gatos DRAFT Objective Design Standards November 15, 2022

4.8 Mirrored windows are prohibited.

4.9 Awnings shall be subject to the following requirements:
a. A minimum vertical clearance of eight feet measured from the pedestrian pathway;
b. Shall not extend beyond individual storefront bays; and c. Shall not be patterned or striped.

4.10 For buildings abutting a single-family zoning district or existing single-family use, no part of a rooftop or upper floor terrace or deck shall be closer than five feet from the facade plane of the lower floor, to prevent views into adjacent residential uses.

4.11 Balconies are allowed on facades facing the street and those facades facing existing non-residential uses on abutting parcels. Such balconies shall be without any projections beyond the building footprint.

4.12 Residential Mixed-Use buildings shall provide at least one of the following features along street-facing façades where the façade exceeds 50 feet in length:
a. A minimum five-foot offset from the façade plane for a length of at least 10 feet;
b. Multiple pilasters or columns, each with a minimum width of two feet; or c. Common open space, such as a plaza, outdoor dining area, or other spaces.

4.13 Continuous blank façades on any floor level shall not exceed 25 percent of the entire façade length along any street.

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Appendix A - Evaluation of Existing Developments
The following developments in the Town of Los Gatos were analyzed to see if they would meet the three following standards that offer multiple design solutions (B.1.1, B.4.1, and B.4.3). These projects were designed and built without requirements to adhere to specific objective design standards. While some of the projects would not comply with all of the standards below, incorporating additional design solutions would be easily accomplished during the design phase.

B. BUILDING STANDARDS
B.1. Massing and Scale

1.1 Multiple-story building façades that face a street shall incorporate breaks in the building mass by implementing a minimum of three of the following solutions along the combined façade area of all primary buildings facing the street:
a. A minimum of 40 percent of the upper floor façade length shall step back from the plane of the ground-floor façade by at least five feet; b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet;
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet. Where an awning or entry covering is provided, it can extend beyond the wall plane;
d. An exterior arcade that provides a sheltered walkway within the building footprint with a minimum depth of eight feet. For a façade 50 feet or greater, the arcade must be a minimum length of 65 percent of the full building façade; for a facade less than 50 feet, the arcade must be a minimum of 80 percent of the full building façade.
e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or
f. Vertical elements, such as pilasters or columns, that protrude a minimum of one foot from the façade and extend the full height of the building base or ground floor, whichever is greater.

ATTACHMENT 3

B.4. Façade Design and Articulation

4.1 Buildings greater than two stories shall be designed to differentiate the base, middle, and top of the building on any street-facing façade. Each of these elements shall be distinguished from one another using at least two of the following solutions:
g. Variation in building mass for a minimum of 60 percent of the length of the street-facing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
h. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; i. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing façade;
j. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade, or
k. The upper floor shall implement a façade height that is a minimum of two feet greater than the façade height of the floor immediately below. The greater façade height shall be made evident by taller windows or arrangement of combined windows.

4.3 Variation in the street-facing façade planes shall be provided for buildings greater than one story by incorporating any combination of the following architectural solutions to achieve a minimum of 16 points:
 Architectural features, such as:
o Arcade or gallery along the ground floor; 8 points
o Awnings or canopies on all ground floor windows of
commercial space;
6 points
o Building cornice; 5 points
o Façade sconce lighting at a minimum of one light fixture per 15 linear feet.
3 points
 Bay or box windows projecting a minimum of 18 inches
from the façade plane and comprising a minimum of 20
percent of the fenestration on the upper floors of the
facade;
6 points
 Balconies or Juliet balconies provided on a minimum of 40 percent of the fenestration on the upper floors of the
facade;
5 points
 Landscaped trellises or lattices extending across a
minimum of 65 percent of any level of the facade;
5 points
 Materials and color changes; 3 points
 Eaves that overhang a minimum of two feet from the
facade with supporting brackets;
3 points
 Window boxes or plant shelves under a minimum of 60
percent of the fenestration on the upper floors of the
facade; or
3 points
 Decorative elements such as molding, brackets, or corbels. 3 points

University Avenue at Los Gatos-Saratoga Road
B.1.1 - (Minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet.
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet.
e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet.

B.4.1 – Not applicable, only two stories.

B.4.3 – (16 points minimum)
Arcade (8 points)
Building cornice (5 points)
Sconce lighting (3 points)
Balconies (5 points)
Decorative elements (3 points)
TOTAL = 24 points

Aventino – Winchester Boulevard
B1.1 - (Minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet.
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet.

B4.1 – (Minimum 2)
a. Variation in building mass for a minimum of 60 percent of the length of the streetfacing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
b. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; B4.3 – (16 points minimum)
Material and color changes (3 points)
Balconies or Juliet balconies (5 points)
Eaves that overhang a minimum of two feet from the façade with supporting brackets (3 points)
Window boxes or plant shelves (3 points)
Decorative elements such as molding, ornamentation, or corbels (3 points):

TOTAL = 17 points

North 40 - Market Hall
B1.1 – (minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet; e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or

B4.1 – (Minimum 2)
a. Variation in building mass for a minimum of 60 percent of the length of the streetfacing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
c. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing-façade;
d. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade;
B4.3 – (16 points minimum)
Awnings or canopies (6 points)
Material and color changes (3 points)
Eaves that overhang a minimum of two feet from the façade with supporting brackets (3 points)
Decorate elements such as molding, brackets, or corbels (3 points) TOTAL = 15 points

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Draft Resolution Date

DRAFT RESOLUTION

RESOLUTION OF THE TOWN COUNCIL

OF THE TOWN OF LOS GATOS ADOPTING OBJECTIVE STANDARDS FOR THE REVIEW

OF QUALIFYING MULTI-FAMILY AND RESIDENTIAL MIXED-USE DEVELOPMENTS WHEREAS, the State of California (State) adopted Senate Bills (SB) SB 167, SB 35, and SB 330, limiting local jurisdiction reviews on certain housing projects to standards that are objective, involving no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal;
WHEREAS, in response to SB 167, SB 35, and SB 330, the Town Council of the Town of Los Gatos (Town) adopted Resolution 2019-053 authorizing application for, and receipt of, SB 2 Planning Grants Program Funds, including execution of an agreement with the California Department of Housing and Community Development by the Town Manager for the preparation of objective standards;
WHEREAS, the purpose of adopting objective standards is to comply with recent State legislation, implement streamlined and ministerial review processes for qualifying housing projects, ensure that these qualifying projects align with the Town’s expectations and vision to maintain and support the character of the Town, provide a set of clear criteria to guide development, and establish an objective framework by which a qualifying project will be evaluated;
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Planning Commission for public hearings on June 22, 2022, August 24, 2022, and September 14, 2022;
ATTACHMENT 4

Draft Resolution Date
WHEREAS, on June 22, 2022, August 24, 2022, and September 14, 2022, the Planning Commission held a public hearing to consider the Draft Objective Standards. The Planning Commission received and considered public comments on the Draft Objective Standards, reviewed the document, and provided input to staff on recommended modifications.

WHEREAS, on September 14, 2022, the Planning Commission recommended that the Town Council adopt the Draft Objective Standards with specific recommended modifications; and
WHEREAS, this matter was regularly noticed in conformance with State and Town law and came before the Town Council for public hearing on November 15, 2022.

NOW, THEREFORE, THE TOWN COUNCIL FINDS AND RESOLVES:

1. The Objective Standards are consistent with the Town’s General Plan.

2. The Objective Standards are exempt from CEQA in that it can be seen with certainty that they will not impact the physical environment. (CEQA Guidelines Section 15061(b)(3).)

3. The Objective Standards attached hereto as Exhibit 1 are adopted.

Draft Resolution Date
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 15
th day of November, 2022, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: __________________

Draft Resolution Date
EXHIBIT 1 – OBJECTIVE STANDARDS

PURPOSE AND APPLICABILITY
The purpose of the Objective Design Standards is to ensure that new qualifying projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include well-designed amenities and outdoor areas to enhance community character.

These standards are intended to guide property owners, applicants, developers, and design professionals by providing clear design direction that enhances the Town’s unique character and ensures a high-quality living environment.

California Government Code Section 65559.5 identifies Qualifying Housing Development Projects to include:
 Multi-family housing developments;
 Residential Mixed-Use Housing developments with a minimum of two-thirds of the square footage designated for residential use;
 Supportive and transitional housing development.

A Qualifying Housing Development Project shall be approved through a streamlined, ministerial review process when the project complies with these Objective Design Standards as well as complying with all existing objective development regulations in the Town, including but not limited to the following:
 General Plan
 Town Code
 Guidelines and Standards for Land Use Near Streams
 Bicycle and Pedestrian Master Plan
 Parks and Public Works Standards
 Santa Clara County Fire Department Requirements
These standards are only to be used for review of qualifying projects where Town review, approval, and/or denial is limited to only objective standards. Many projects will proceed through the standard review process, in which case the objective standards included herein would not apply.

ORGANIZATION
The Objective Design Standards are organized into two primary sections: Site Standards; and Building Standards. The Site Standards section includes objective standards for site layout and building placement; vehicular access and parking; and outdoor areas and amenities. The Building Standards section includes objective standards for building form and massing; façade articulation; materials; and roof design.

Draft Resolution Date

KEY TERMS
Community recreation space in Residential Mixed-Use developments means public gathering spaces, such as: plazas, outdoor dining areas, squares, pocket parks, or other community areas for the use of all residents and the business patrons and tenants.

Community recreation space in multi-family developments means gathering spaces, such as:
play areas, pool areas, patios, rooftop decks, or other community areas for the use of all residents.

Façade articulation means the division of a building façade into distinct sections; including the materials, patterns, textures, and colors that add visual interest to a building or façade.

Fenestration means the design, construction, and presence of any openings in a building, such as: windows, doors, vents, wall panels, skylights, curtain walls, and louvers.

Landscaping means an area devoted to plantings, lawn, ground cover, gardens, trees, shrubs, and other plant materials; excluding driveways, parking, loading, or storage areas.

Multi-family use means the use of a site for three or more dwelling units on the same site.

Objective Design Standards means development regulations that are measurable, verifiable, and knowable to all parties prior to submittal of a qualifying project. A planning review process based on objective standards involves streamlined ministerial review with no personal or subjective judgement by a public official.

Primary building means a building within which the principal or main use on a lot or parcel is conducted. Where a permissible use involves more than one building designed or used for the primary purpose on the subject property, each such building on the parcel shall be construed as constituting a primary building.

Private recreation space at ground level means an outdoor enclosed patio or deck accessible from a single dwelling unit.

Private recreation space above ground level means an outdoor balcony, terrace, or rooftop deck, accessible from a single dwelling unit.

Residential Mixed-Use means a development project where a variety of uses such as office, commercial, and institutional, are combined with residential use(s) in a single building or on a single site in an integrated project. Two thirds of the project square footage must be residential uses.

Transitional and supportive housing means a type of housing used to facilitate the movement of people experiencing homelessness into permanent housing and independent living.

Draft Resolution Date
A. SITE STANDARDS
A.1. Pedestrian Access

1.1 All on-site buildings, entries, facilities, amenities, and vehicular and bicycle parking areas shall be internally connected with a minimum four-foot-wide pedestrian pathway or pathway network that may include use of the public sidewalk. The pedestrian pathway network shall connect to the public sidewalk along each street.

1.2 Pedestrian pathways within internal parking areas shall be separated from vehicular circulation by a physical barrier, such as a grade separation or a raised planting strip, of at least six inches in height and at least six feet in width. A pedestrian pathway is exempt from this standard where it crosses a parking vehicular drive aisle.

Figure A.1.2

Draft Resolution Date
A.2. Bicycle Access

2.1 Bicycle parking shall be located within 50 feet of at least one primary building entrance.

2.2 Multi-family residential buildings shall provide one bicycle parking space per dwelling unit.

2.3 Residential Mixed-Use projects shall provide one bicycle parking space per dwelling unit and one bicycle parking space per 2,000 square feet of nonresidential space.

A.3. Vehicular Access

3.1 Off-street parking lots shall have vehicular circulation using an internal vehicular network that preclude the use of a public street for aisle-to-aisle internal circulation.

Figure A.3.1

Draft Resolution Date
A.4. Parking Location and Design

4.1 Surface parking lots and carports shall not be located between the primary building frontage and the street.

4.2 Uncovered parking rows with at least 15 consecutive parking spaces shall include a landscape area of six feet minimum width at intervals of no more than 10 consecutive parking stalls. One tree shall be provided in each landscape area.

Figure A.4.2
A.5. Parking Structure Access

5.1 Any vehicular entry gate to a parking structure shall be located to allow a minimum of 18 feet between the gate and the back of the sidewalk to minimize conflicts between sidewalks and vehicle queuing.

5.2 A parking structure shall not occupy more than 50 percent of the building width of any street-facing façade, and it shall be recessed a minimum of five feet from the street-facing façade of the building.

5.3 For projects with five or more residential units and that have a vehicle access gate to the parking structure, a pedestrian gate shall also be provided.

Draft Resolution Date
A.6. Utilities

6.1 Pedestrian-oriented lighting shall be provided along all pedestrian paths in community recreation spaces. Exterior lighting fixtures shall be a minimum of three feet and a maximum of 12 feet in height. Light fixtures shall be placed along the pedestrian path at a spacing of no more than 30 linear feet.

6.2 Exterior lighting shall be fully shielded and restrain light to a minimum 30 degrees below the horizontal plane of the light source. Lighting shall be arranged so that the light will not shine directly on lands of adjacent residential zoned properties. Uplighting is prohibited.

Figure A.6.2

6.3 Street level views of ground level utility cabinets, mechanical equipment, trash, and service areas shall be screened from sight with landscape planting, fencing, or a wall, as allowed by the Town Code. The screening shall be at least the same height as the item being screened and screening that is not landscape material shall be constructed with one or more of the materials used on the primary building.

6.4 Rooftop mechanical equipment shall be screened from view from the street.

Solar equipment is exempt from this requirement.

Draft Resolution Date
A.7. Landscaping and Screening

7.1 At least 50 percent of the front setback area shall be landscaped.

7.2 A minimum 10-foot-wide landscape buffer shall be provided along the full length of the shared property line between multi-family or Residential Mixed-Use development and abutting residential properties. The buffer shall include the following:
a. A solid masonry wall with a six-foot height, except within a street-facing setback where walls are not permitted; and
Figure A.7.2a
b. Trees planted at a rate of at least one tree per 30 linear feet along the shared property line. Tree species shall be selected from the Town of Los Gatos Master Street Tree List and shall be a minimum 15-gallon size.

7.3 Surface parking lots shall be screened from view of the street with landscaping or a wall with a minimum three-foot height to screen the parking lot when not already screened by a primary building. When located in a street-facing setback, screening may not exceed a height of three feet.

Draft Resolution Date
A.8. Fencing

8.1 Fences, walls, and gates within required setbacks along all street frontages are prohibited unless used to screen on-site parking spaces from view from the street.

8.2 Chain link fencing is prohibited.

8.3 Perimeter barrier gates for vehicles and pedestrian entry gates shall have a maximum height of six feet.

8.4 Solid vehicular and pedestrian entry gates are prohibited. Entry gates shall be a minimum 50 percent open view.

A.9. Retaining Walls

9.1 Retaining walls shall not exceed five feet in height. Where an additional retained portion is necessary, multiple-terraced walls shall be used. Terraced walls shall set back at least three feet from the lower segment.

9.2 Retaining walls shall not run in a straight continuous direction for more than 50 feet without including the following:
a. A break, offset, or landscape pocket in the wall plane of at least three feet in length and two feet in depth; and
b. Landscaping at a minimum height of three feet at the time of installation along a minimum of 60 percent of the total length of the retaining wall.

A.10. Landscaped, Private, and Community Recreation Spaces

10.1 The landscaped, private, and community recreation spaces listed below are required for all qualifying projects. Community recreation spaces and private recreation spaces are calculated independent of each other. Landscaped areas within community recreation spaces can contribute to required minimums for both landscaped area and community recreation space.
a. Landscaped space: A minimum of 20 percent of the site area shall be landscaped.
b. Private recreation space: The minimum horizontal dimension is six feet in any direction and a minimum area of 60 square feet. The minimum vertical clearance required is eight feet. Private recreation space shall be directly accessible from the residential unit. Landscaped sections of private recreation space cannot count towards required landscaping requirements. i. Each ground floor dwelling unit shall have a minimum of 120 square feet of usable private recreation space.

Draft Resolution Date
ii. Each dwelling unit above the ground floor shall have a minimum of 60 square feet of usable private recreation space. Where multiple balconies are provided for a single unit, the 60-square-foot minimum can be an aggregate of all balconies, provide each balcony meets the requirements for minimum horizontal dimensions.
c. Community recreation space: The minimum dimensions are 10 feet by six feet. A minimum of 60 percent of the community recreation space shall be open to the sky and free of permanent solid-roofed weather protection structures. Community recreation space shall provide shading for a minimum 15 percent of the community recreation space by either trees or structures, such as awnings, canopies, umbrellas, or a trellis. Tree shading shall be calculated by using the diameter of the tree crown at 15 years maturity. Shading from other built structures shall be calculated by using the surface area of the overhead feature.
i. Community recreation space shall be provided in Residential Mixed-Use developments at a minimum of 100 square feet per residential unit plus a minimum of two percent of the non-residential square footage. ii. Community recreation space shall be provided in multi-family residential development projects at a minimum of 100 square feet per residential unit.
iii. A project with four or less residential units is exempt from community recreation space requirements.
iv. Landscaped roof space can satisfy both required landscaping requirements and community recreation space requirements.

Landscaped roof space may not be used to satisfy more than 50 percent of the required landscaping for the site.

Draft Resolution Date
A.11. Building Placement

11.1 To ensure buildings provide a continuous frontage along sidewalks, development in commercial zones shall place at least 75 percent of any ground floor street-facing façade on or within five feet of the setback line designated in the Town Code.

Figure A.11.1

11.2 A Residential Mixed-Use project with a ground-floor non-residential use shall provide site amenities on a minimum of 15 percent of the ground plane between the building and the front or street-side property line. The site amenities shall be comprised of any of the following elements:
a. Landscape materials or raised planters;
b. Walls designed to accommodate pedestrian seating, no higher than 36 inches;
c. Site furnishings, including fountains, sculptures, and other public art; or d. Tables and chairs associated with the ground floor use.

Draft Resolution Date
B. BUILDING STANDARDS
B.1. Massing and Scale

1.1 Multiple-story building façades that face a street shall incorporate breaks in the building mass by implementing a minimum of three of the following solutions along the combined façade area of all primary buildings facing the street:
a. A minimum of 40 percent of the upper floor façade length shall step back from the plane of the ground-floor façade by at least five feet; Figure B.1.1a

Draft Resolution Date
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet;
Figure B.1.1b

Draft Resolution Date
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet. Where an awning or entry covering is provided, it can extend beyond the wall plane;
Figure B.1.1c
d. An exterior arcade that provides a sheltered walkway within the building footprint with a minimum depth of eight feet. For a façade 50 feet or greater, the arcade must be a minimum length of 65 percent of the full building façade; for a facade less than 50 feet, the arcade must be a minimum of 80 percent of the full building façade.

Draft Resolution Date
Figure B.1.1d (1)
Figure B.1.1d (2)

Draft Resolution Date
e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or
Figure B.1.1e

Draft Resolution Date
f. Vertical elements, such as pilasters or columns, that protrude a minimum of one foot from the façade and extend the full height of the building base or ground floor, whichever is greater.

Figure B.1.1f

1.2 Upper floors above two stories shall be set back by a minimum of five feet from the ground-floor façade.

1.3 Townhomes or rowhouses shall have no more than six contiguous units in any single building.

Draft Resolution Date
B.2. Parking Structure Design

2.1 The ground-floor façade of a parking structure facing a street or pedestrian walkway shall be fenestrated on a minimum of 40 percent of the façade.

2.2 Façade openings on upper levels of a parking structure shall be screened at a minimum 10 percent and up to 30 percent of the opening to prevent full transparency into the structure.

2.3 Parking structures facing a street and greater than 40 feet in length shall include landscaping between the building façade and the street, or façade articulation of at least 25 percent of the façade length. The façade articulation shall be implemented by one of the following solutions:
a. An offset of the façade plane with a depth of at least 18 inches for a minimum of eight feet in horizontal length; or
b. A different building material covering the entire façade articulation.

B.3. Roof Design

3.1 At intervals of no more than 40 feet along the building façade, horizontal eaves shall be broken using at least one of the following strategies:
a. Gables;
b. Building projection with a depth of a minimum of two feet; c. Change in façade or roof height of a minimum of two feet; d. Change in roof pitch or form; or
e. Inclusion of dormers, parapets, and/or varying cornices.

3.2 Skylights shall have a flat profile rather than domed.

Draft Resolution Date

3.3 The total width of a single dormer or multiple dormers shall not exceed 50 percent of the total roof length at the street-facing façade. The dormer width shall be measured at dormer roof fascia, or widest part of the dormer.

Figure B.3.3

3.4 Carport roof materials shall be the same as the primary building.

Draft Resolution Date
B.4. Façade Design and Articulation

4.1 Buildings greater than two stories shall be designed to differentiate the base, middle, and top of the building on any street-facing façade. Each of these elements shall be distinguished from one another using at least two of the following solutions:
a. Variation in building mass for a minimum of 60 percent of the length of the street-facing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
Figure B.4.1a

Draft Resolution Date
b. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; Figure B.4.1b

Draft Resolution Date
c. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing façade;
Figure B.4.1c

Draft Resolution Date
d. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade, or
e. The upper floor shall implement a façade height that is a minimum of two feet greater than the façade height of the floor immediately below. The greater façade height shall be made evident by taller windows or arrangement of combined windows.

Figure B.4.1e

4.2 All façade materials, such as siding, window types, and architectural details, used on the street-facing façade shall be used on all other building façades.

Draft Resolution Date

4.3 Variation in the street-facing façade planes shall be provided for buildings greater than one story by incorporating any combination of the following architectural solutions to achieve a minimum of 16 points:
 Architectural features, such as:
o Arcade or gallery along the ground floor; 8 points
o Awnings or canopies on all ground floor windows of
commercial space;
6 points
o Building cornice; 5 points
o Façade sconce lighting at a minimum of one light fixture per 15 linear feet.
3 points
 Bay or box windows projecting a minimum of 18 inches
from the façade plane and comprising a minimum of 20
percent of the fenestration on the upper floors of the
facade;
6 points
 Balconies or Juliet balconies provided on a minimum of 40 percent of the fenestration on the upper floors of the
facade;
5 points
 Landscaped trellises or lattices extending across a
minimum of 65 percent of any level of the facade;
5 points
 Materials and color changes; 3 points
 Eaves that overhang a minimum of two feet from the
facade with supporting brackets;
3 points
 Window boxes or plant shelves under a minimum of 60
percent of the fenestration on the upper floors of the
facade; or
3 points
 Decorative elements such as molding, brackets, or corbels. 3 points

4.4 Garage doors shall be recessed a minimum of 12 inches from the façade plane and along the street-facing façade shall not exceed 40 percent of the length of the building façade.

Draft Resolution Date

4.5 Changes in building materials shall occur at inside corners.

Figure B.4.5

Draft Resolution Date

4.6 A primary building entrance shall be provided facing a street or community recreation space. Additionally, all development shall meet the following requirements:
a. Pedestrian entries to ground-floor and upper-floor non-residential uses shall meet at least one of the following standards:
i. The entrance shall be recessed in the façade plane at least three feet in depth; or
ii. The entrance shall be covered by an awning, portico, or other architectural element projecting from the façade a minimum of three feet.

Figure B.4.6a

Draft Resolution Date
b. For ground-floor commercial uses, façades facing a street shall include windows, doors, or openings for at least 60 percent of the building façade that is between two and 10 feet above the level of the sidewalk.

Figure B.4.6b

4.7 Pedestrian entries to buildings shall meet minimum dimensions to ensure adequate access based on use and development intensity. Building entries inclusive of the doorway and the facade plane shall meet the following minimum dimensions:
a. Individual residential entries: five feet in width
b. Single entry to multiple residential unit building, including Residential MixedUse buildings: eight feet in width c. Storefront entry: six feet in width

Draft Resolution Date

4.8 Mirrored windows are prohibited.

4.9 Awnings shall be subject to the following requirements:
a. A minimum vertical clearance of eight feet measured from the pedestrian pathway;
b. Shall not extend beyond individual storefront bays; and c. Shall not be patterned or striped.

4.10 For buildings abutting a single-family zoning district or existing single-family use, no part of a rooftop or upper floor terrace or deck shall be closer than five feet from the facade plane of the lower floor, to prevent views into adjacent residential uses.

4.11 Balconies are allowed on facades facing the street and those facades facing existing non-residential uses on abutting parcels. Such balconies shall be without any projections beyond the building footprint.

4.12 Residential Mixed-Use buildings shall provide at least one of the following features along street-facing façades where the façade exceeds 50 feet in length:
a. A minimum five-foot offset from the façade plane for a length of at least 10 feet;
b. Multiple pilasters or columns, each with a minimum width of two feet; or c. Common open space, such as a plaza, outdoor dining area, or other spaces.

4.13 Continuous blank façades on any floor level shall not exceed 25 percent of the entire façade length along any street.

Draft Resolution Date
Appendix A - Evaluation of Existing Developments
The following developments in the Town of Los Gatos were analyzed to see if they would meet the three following standards that offer multiple design solutions (B.1.1, B.4.1, and B.4.3). These projects were designed and built without requirements to adhere to specific objective design standards. While some of the projects would not comply with all of the standards below, incorporating additional design solutions would be easily accomplished during the design phase.

C. BUILDING STANDARDS
C.1. Massing and Scale

1.1 Multiple-story building façades that face a street shall incorporate breaks in the building mass by implementing a minimum of three of the following solutions along the combined façade area of all primary buildings facing the street:
a. A minimum of 40 percent of the upper floor façade length shall step back from the plane of the ground-floor façade by at least five feet; b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet;
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet. Where an awning or entry covering is provided, it can extend beyond the wall plane;
d. An exterior arcade that provides a sheltered walkway within the building footprint with a minimum depth of eight feet. For a façade 50 feet or greater, the arcade must be a minimum length of 65 percent of the full building façade; for a facade less than 50 feet, the arcade must be a minimum of 80 percent of the full building façade.
e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or
f. Vertical elements, such as pilasters or columns, that protrude a minimum of one foot from the façade and extend the full height of the building base or ground floor, whichever is greater.

Draft Resolution Date
B.4. Façade Design and Articulation

4.1 Buildings greater than two stories shall be designed to differentiate the base, middle, and top of the building on any street-facing façade. Each of these elements shall be distinguished from one another using at least two of the following solutions:
g. Variation in building mass for a minimum of 60 percent of the length of the street-facing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
h. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; i. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing façade;
j. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade, or
k. The upper floor shall implement a façade height that is a minimum of two feet greater than the façade height of the floor immediately below. The greater façade height shall be made evident by taller windows or arrangement of combined windows.

Draft Resolution Date

4.3 Variation in the street-facing façade planes shall be provided for buildings greater than one story by incorporating any combination of the following architectural solutions to achieve a minimum of 16 points:
 Architectural features, such as:
o Arcade or gallery along the ground floor; 8 points
o Awnings or canopies on all ground floor windows of
commercial space;
6 points
o Building cornice; 5 points
o Façade sconce lighting at a minimum of one light fixture per 15 linear feet.
3 points
 Bay or box windows projecting a minimum of 18 inches
from the façade plane and comprising a minimum of 20
percent of the fenestration on the upper floors of the
facade;
6 points
 Balconies or Juliet balconies provided on a minimum of 40 percent of the fenestration on the upper floors of the
facade;
5 points
 Landscaped trellises or lattices extending across a
minimum of 65 percent of any level of the facade;
5 points
 Materials and color changes; 3 points
 Eaves that overhang a minimum of two feet from the
facade with supporting brackets;
3 points
 Window boxes or plant shelves under a minimum of 60
percent of the fenestration on the upper floors of the
facade; or
3 points
 Decorative elements such as molding, brackets, or corbels. 3 points

Draft Resolution Date
University Avenue at Los Gatos-Saratoga Road
B.1.1 - (Minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet.
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet.
e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet.

B.4.1 – Not applicable, only two stories.

B.4.3 – (16 points minimum)
Arcade (8 points)
Building cornice (5 points)
Sconce lighting (3 points)
Balconies (5 points)
Decorative elements (3 points)
TOTAL = 24 points

Draft Resolution Date
Aventino – Winchester Boulevard
B1.1 - (Minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet.
c. Recessed façade plane to accommodate a building entry with a minimum ground plane area of 24 square feet.

B4.1 – (Minimum 2)
a. Variation in building mass for a minimum of 60 percent of the length of the streetfacing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
b. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; B4.3 – (16 points minimum)
Material and color changes (3 points)
Balconies or Juliet balconies (5 points)
Eaves that overhang a minimum of two feet from the façade with supporting brackets (3 points)
Window boxes or plant shelves (3 points)
Decorative elements such as molding, ornamentation, or corbels (3 points):

TOTAL = 17 points

Draft Resolution Date
North 40 - Market Hall
B1.1 – (minimum 3)
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet; e. Ground floor open area abutting street-facing façade with a minimum area of 60 square feet; or

Draft Resolution Date
B4.1 – (Minimum 2)
a. Variation in building mass for a minimum of 60 percent of the length of the streetfacing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
c. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing-façade;
d. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade;
B4.3 – (16 points minimum)
Awnings or canopies (6 points)
Material and color changes (3 points)
Eaves that overhang a minimum of two feet from the façade with supporting brackets (3 points)
Decorate elements such as molding, brackets, or corbels (3 points) TOTAL = 15 points

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Intentionally
Left Blank

PREPARED BY: SEAN MULLIN, AICP and RYAN SAFTY
Senior Planner Associate Planner
Reviewed by: Planning Manager and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

PLANNING COMMISSION
REPORT
MEETING DATE: 6/22/2022
ITEM NO: 3
DATE: June 17, 2022
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Recommendation of the Draft Objective Standards to the Town Council.

RECOMMENDATION:

Review and recommendation of the Draft Objective Standards to the Town Council.

BACKGROUND:

The Town of Los Gatos has developed Draft Objective Standards for the review of multi-family and mixed-use development applications. This effort is in response to State legislation (Senate Bill (SB) 167, SB 35, and SB 330) requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as, “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4).

The purpose of adopting objective standards is to:
• Comply with recent State housing legislation;
• Implement streamlined and ministerial review processes for qualifying housing projects; • Ensure that these qualifying projects align with the Town’s expectations and vision to maintain and support the character of the Town;
• Provide a set of clear criteria to guide development; and • Establish an objective framework by which a qualifying project will be evaluated.

ATTACHMENT 5

PAGE 2 OF 4
SUBJECT: Draft Objective Standards
DATE: June 17, 2022
BACKGROUND (continued):

On November 5, 2019, the Town Council adopted Resolution 2019-053 (Exhibit 1) to authorize application for, and receipt of, SB 2 Planning Grant Program funds, including execution of an agreement with the California Department of Housing and Community Development (HCD) by the Town Manager. Planning staff submitted an application with a proposal to develop objective standards and by-right findings for the review of qualifying housing development applications, and to identify amendments to the Town Code necessary to add the objective standards and findings to Chapter 29 of the Town Code (Zoning Regulations). The Town received approval of the application and entered into an agreement with HCD to receive reimbursable grant funding for the proposed scope of work.

On November 20, 2020, staff released a request for qualifications (RFQ) to provide services for preparation of objective standards and by-right findings for the review of qualifying housing development applications as provided in the Town of Los Gatos SB 2 Planning Grant Program application. Staff received proposals from four firms. After reviewing the submittals and conducting interviews, staff concluded that M-Group planning consultants provided the best fit, capacity, and professional expertise for the proposed scope of work. On March 16, 2021, the Town Council authorized the Town Manager to execute an agreement with M-Group for the proposed scope of work.

To date, the project initiation phase has been completed, including review of State legislation and existing Town guidelines and standards, and collation of feedback received during five meetings with the Planning Commission subcommittee between July and December 2021. On February 22, 2022, staff conducted the first of two community engagement meetings to gather feedback from residents and stakeholders. On May 12, 2022, a preliminary draft of the objective standards was presented and discussed at a second community engagement meeting.

A summary of the feedback received at the community engagement meetings is included as Exhibit 2. Based on the feedback from the Planning Commission subcommittee and the community, staff and M-Group developed Draft Objective Standards for consideration by the Planning Commission (Exhibit 3).

DISCUSSION:

The Draft Objective Standards document is organized into two sections: Site Standards (Section A) and Building Design (Section B). The Site Standards section includes objective standards for site layout and building placement; vehicular access and parking; and outdoor spaces and amenities. The Building Design section includes objective standards for building form and massing; façade articulation; materials; and roof design. Many of the objective standards have corresponding figures to help visualize the standards.

PAGE 3 OF 4
SUBJECT: Draft Objective Standards
DATE: June 17, 2022
DISCUSSION (continued):

In addition to the objective standards listed in this document, qualifying multi-family and mixed-use projects would also be required to comply with all existing development requirements in the Town Code, including but not limited to building code requirements, existing Town standards, adopted specific plans, and development standards such as height and setbacks. If there is any conflict between these standards and those in another adopted document, the more restrictive standard shall apply.

PUBLIC COMMENTS:

Throughout the process and prior to the June 22, 2022, Planning Commission meeting, staff contacted several professional organizations, design professionals, developers, and residents to inform them about the meeting and encourage participation and written comment on the Draft Objective Standards. In addition to the direct contact summarized above, staff requested public input through the following media and social media resources:
• A poster posted at the Planning counter at Town Hall and at the Library; • On the Town’s website home page, What’s New;
• On the Town’s webpage dedicated to objective standards; and • On the Town’s social media accounts.

Public comments received by 11:00 a.m., Friday, June 17, 2022, are included as Exhibit 4.

CONCLUSION:

A. Summary
The Town of Los Gatos has developed Draft Objective Standards for the review of multifamily and mixed-use development applications as required by State legislation. The Draft Objective Standards were developed following research by staff and the Town’s consultant, five meetings with the Planning Commission subcommittee, and two community engagement meetings.

B. Recommendation
The Draft Objective Standards have been forwarded to the Planning Commission for review.

Staff recommends that the Planning Commission:
• Receive and consider public comments;
• Complete the review of the Draft Objective Standards; • Provide input on any recommended modifications to the Draft Objective Standards; and

PAGE 4 OF 4
SUBJECT: Draft Objective Standards
DATE: June 17, 2022
CONCLUSION (continued):
• Forward a recommendation to the Town Council to approve the Draft Objective Standards.

C. Alternatives
Alternatively, the Commission can:

1. Forward a recommendation of approval to the Town Council with additional and/or modified objective standards; or

2. Continue the matter to a date certain with specific direction to staff.

NEXT STEPS:

Following review and recommendation by the Planning Commission, the Town Council will consider the Draft Objective Standards, the Planning Commission recommendation, and any additional public comments. Once the Town Council adopts objective standards, staff will return to the Planning Commission for consideration of a Town Code amendment to incorporate by-right findings for qualifying housing projects meeting the adopted objective standards into the Town Code. Additionally, staff will develop streamlined review procedures for applications proposing qualifying housing projects.

EXHIBITS:

1. Town Council Resolution 2019-053

2. Summary of feedback received during community engagement meetings

3. Draft Objective Standards

4. Public Comments received prior to 11:00 a.m., Friday, June 17, 2022

RESOLUTION 2019- 053

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

AUTHORIZING APPLICATION FOR, AND RECEIPT OF,
SB 2 PLANNING GRANTS PROGRAM FUNDS
WHEREAS, the State of California, Department of Housing and Community Development Department) has issued a Notice of Funding Availability ( NOFA) dated March 28, 2019, for its Planning Grants Program ( PGP); and
WHEREAS, the Town Council of the Town of Los Gatos desires to submit a project application for the PGP program to accelerate the production of housing and will submit a 2019 PGP grant application as described in the Planning Grants Program NOFA and SB 2 Planning Grants Program Guidelines released by the Department for the PGP Program; and WHEREAS, the Department is authorized to provide up to $123 million under the SB 2 Planning Grants Program from the Building Homes and Jobs Trust Fund for assistance to Counties ( as described in Health and Safety Code section 50470 et seq. ( Chapter 364, Statutes of 2017 ( SB 2)) related to the PGP Program.

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESOLVES AS FOLLOWS:

SECTION 1. The Town Council hereby authorizes and directs the Town Manager to apply for and submit to the Department the 2019 Planning Grants Program application in the amount of $ 160, 000.

SECTION 2. In connection with the PGP grant, if the application is approved by the Department, the Town Manager is authorized to enter into, execute, and deliver a State of California Agreement ( Standard Agreement) for the amount of $ 160, 000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the PGP grant, the Town of Los Gatos' s obligations related thereto, and all amendments thereto collectively, the " PGP Grant Documents').

SECTION 3. The Town of Los Gatos shall be subject to the terms and conditions as specified in the Standard Agreement, the SB 2 Planning Grants Program Guidelines, and any applicable PGP guidelines published by the Department. Funds are to be used for allowable 1of2
Resolution 2019- 053 November 5, 2019
EXHIBIT 1

expenditures as specifically identified in the Standard Agreement. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application will be enforceable through the executed Standard Agreement. The Town Council hereby agrees to use the funds for eligible uses in the manner presented in the application as approved by the Department and in accordance with the Planning Grants NOFA, the Planning Grants Program Guidelines, and 2019 Planning Grants Program Application.

SECTION 4. The Town Manager is authorized to execute the Town of Los Gatos Planning Grants Program application, the PGP Grant Documents, and any amendments thereto, on behalf of the Town of Los Gatos, as required by the Department for receipt of the PGP Grant.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 5t^ day of November 2019 by the following vote:

COUNCIL MEMBERS:

AYES: Marcia Jensen, Rob Rennie, Marico
NAYS: None
ABSENT: None
ABSTAIN: None
ATTEST:
cbk\ sl'- Vl

TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA.

DATE: "
Barbara SpNctor, Mayor Steven Leonardis
SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATO , CAL) FORNIA
i- C
DATE: ( d,bll 1.
2of2
Resolution 2019- 053 November 5, 2019

February 22, 2022, Community Meeting Feedback
Below is a listing of the comments and questions received. Response(s) from the consultant and/or staff are provided below each comment in italics.

1. Questioned the “score card” measurement approach to allow developers to surpass some of the specific objective standard requirements yet still “pass”.

The “score card” approach is just one option to implement objective standards and would only be used if the Town feels it is appropriate. The “score card” wouldn’t be drafted to allow developers to surpass important standards. It would be used in a way that gives the developer flexibility by offering several different approaches to achieve one of the Town’s underlining goals. Developers still need to meet the Town’s required threshold, but they would be given a variety of tools, each with different weighted values, to meet that threshold.

2. Questioned how long the development of the Objective Standards document will take and asked when will the document be ready.

We anticipate getting a drafted document to the community in spring of this year, collecting additional feedback from the community, and taking the document to the Planning Commission for review in early Summer. The Planning Commission would make a recommendation to the Town Council, and hopefully be completed by late summer or early fall of 2022.

3. When this is adopted, will the Town have to go through and adopt revisions to existing Town documents? What happens after the Objective Standards document is adopted? Are there additional steps?
This will be a standalone policy document. The Town’s strategy is to adopt objective standards and then develop a program for implementation.

4. How would these standards work with the different range of housing projects, such as market rate and affordable housing? There should be a consistent look for all types of housing projects.

These standards would apply to all multi-family and mixed-use projects: affordable and market rate. The Town would not have specific below-market rate design requirements; everything would be consistent.

EXHIBIT 2

5. Questioned why objective standards aren’t being developed for all housing types, as opposed to just multi-family and mixed-use projects. Many of the Town’s design documents are just guidelines. How would the objective standards effect single-family development? This is an opportunity to apply objective standards to all projects so they can be processed faster.

This current effort is to create a ministerial process for multi-family and mixed-use in compliance with State law and utilizing grant funds specifically for multi-family and mixeduse objective standards.

6. Concern was also expressed regarding the exception process since current Town Code and policy documents have exception processes. Can we leave exception and exemptions in the guideline documents and require Planning Commission review for any exception or exemption?
If the application requires any sort of exception or variance, they would not be eligible for the streamlined ministerial review and would be subject to a discretionary review process.

7. Sometimes when standards are established, all development starts to look alike. Is there a possibility of having alternative standards? For example, height – to avoid flat roofs, is there the ability to have maximum roof height for flat roof and different maximum height for gabled roofs to promote a variation in roof massing? Yes, there are ways, but we need to be careful to make sure the zoning ordinance height requirements are still complied with. The Draft Objective Standards document includes a number of items that offer a list of different standards related to a single goal and requiring the developer to incorporate a minimum number of the standards, but not all.

8. Why would the standards need to be consistent with the Zoning code? Couldn’t we amend the Zoning code?
Yes, the Zoning Code could be amended; however, this is intended to be a standalone policy document that works in concert with the Town Code.

May 12, 2022, Community Meeting Feedback
Below is a listing of the comments and questions received. Response(s) from the consultant and/or staff are provided below each comment in italics.

1. Questioned the quantity of housing required by the State.

Today’s presentation is about the development of objective standards for multi-family and mixed-use projects, not the Regional Housing Needs Allocation (RHNA) numbers, which is being reviewed by the Housing Element Advisory Board (HEAB) as a part of the Housing Element Update process.

2. Questioned if these objectives standards are new and different than the Town’s current objective standards for these types of housing.

These Draft Objective Standards are new. The Town Code has existing objective standards.

Town staff and the consultant compiled a list of all existing Town standards, whether objective or subjective, for review. The Planning Commission subcommittee discussed each standard to determine which subjective standards should be modified to be objective and included in this document. The existing objective standards from Town Code and other policy documents are still applicable. The Town is reviewing which existing subjective standards should become objective for the review of qualifying multi-family and mixed-use projects. The goal is to not duplicate existing objective standards as they are still applicable.

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Los Gatos DRAFT Objective Standards June 2022

TOWN OF LOS GATOS

DRAFT OBJECTIVE STANDARDS
June 22, 2022

PURPOSE
The purpose of the Objective Design Standards is to ensure that new qualifying multi-family and mixed-use projects in Los Gatos provide high-quality architecture, integrate with surrounding development, and include well-designed amenities and open spaces to enhance community character. These standards are intended to guide property owners, applicants, developers, and design professionals by providing clear design direction that enhances the Town’s unique character and ensures a high-quality living environment.

ORGANIZATION AND APPLICABILITY
The following Objective Design Standards are organized into two primary sections: Site Standards; and Building Design. The Site Standards section includes objective standards for site layout and building placement, vehicular access and parking, and outdoor spaces and amenities. The Building Design section includes objective standards for building form and massing, façade articulation, materials, and roof design.

Qualifying multi-family and mixed-use projects must also comply with all existing development requirements in the Town Code, including but not limited to building code requirements, existing Town standards, adopted specific plans, and development standards such as height and setbacks. If there is any conflict between these standards and those in another adopted document, the more restrictive standard shall apply.

EXHIBIT 3

Los Gatos DRAFT Objective Standards June 2022
A. SITE STANDARDS
A.1. Pedestrian Access

1.1 All on-site buildings, entries, facilities, amenities, and parking areas shall be internally connected with pedestrian pathways and may include use of the public sidewalk. Pedestrian pathways shall connect to the public sidewalk along each street.

1.2 Pedestrian walkways within internal parking areas shall be separated from vehicular circulation by a physical barrier, such as a grade separation or a raised planting strip of at least six inches.

Figure A.1.2

Los Gatos DRAFT Objective Standards June 2022
A.2. Vehicular Access

2.1 Off-street parking shall have internal vehicular circulation that precludes the use of a street for aisle-to-aisle circulation.

Figure A.2.1
A.3. Parking Location and Design

3.1 Driveways and surface parking lots shall not be located between the building frontage and the street.

3.2 Multiple parking areas located on a common property shall be internally connected and shall use shared driveways to access the street.

Los Gatos DRAFT Objective Standards June 2022

3.3 Uncovered parking rows with at least 15 consecutive parking spaces shall include a landscape area of six feet minimum width at intervals of no more than 10 consecutive parking stalls. One tree shall be provided in each landscape area.

Figure A.3.3

3.4 Carports shall not be located between a building and a street.

A.4. Parking Structure Access

4.1 Any automobile entry gate to a parking structure shall be located to allow a minimum of 25 feet between the gate and the back of the sidewalk to minimize conflicts between sidewalks and vehicle queuing.

4.2 A parking structure shall not occupy more than 50 percent of the building width of any street-facing façade and shall be recessed a minimum five feet from streetfacing façades of the building.

A.5. Utilities

5.1 Pedestrian-oriented lighting shall be provided along all pedestrian paths. Exterior lighting fixtures shall be a minimum of three feet and a maximum of 15 feet in height.

Los Gatos DRAFT Objective Standards June 2022

5.2 Exterior lighting shall be fully shielded and restrain light to a minimum 30 degrees below the horizontal plane of the light source. Uplighting is prohibited.

Figure A.5.2

5.3 Rooftop and ground-mounted utility cabinets, mechanical equipment, trash, and service areas shall be screened from view from the street with landscape planting, fencing, or a wall. The screening shall be at least the same height as the item being screened and shall be constructed with one or more of the materials used on the primary building. Solar equipment is exempt from this requirement.

A.6. Landscaping and Screening

6.1 At least 50 percent of the front setback area shall be landscaped.

6.2 A minimum 10-foot-wide landscape buffer shall be provided between multi-family or mixed-use development and abutting residential properties. The buffer shall include the following:

Los Gatos DRAFT Objective Standards June 2022
a. A solid masonry wall with a six-foot height, except within a street-facing setback, where the maximum permitted height is three feet; Figure A.6.2a
b. Trees planted at a rate of at least one tree per 30 linear feet along the shared property line. Tree species shall be selected from the Town of Los Gatos Master Street Tree List and shall be a minimum 15-gallon size; and

6.3 Surface parking lots shall be screened from view of the street with landscaping or a wall with a minimum three-foot height to screen the parking lot.

A.7. Fencing

7.1 Fences, walls, hedges, and gates within required setbacks along all street frontages shall have a maximum height of three feet.

7.2 Chain link fencing is prohibited.

7.3 Vehicular entry gates and pedestrian entry gates shall have a maximum height of six feet.

7.4 Solid vehicular and pedestrian entry gates are prohibited. Entry gates shall be a minimum 50 percent open view.

Los Gatos DRAFT Objective Standards June 2022
A.8. Retaining Walls

8.1 Retaining walls shall not exceed five feet in height. Where an additional retained portion is necessary, multiple-terraced walls shall be used. Terraced walls shall set back at least three feet from the lower segment.

8.2 Retaining walls shall not run in a straight continuous direction for more than 50 feet without including the following:
a. A break, offset, or landscape pocket in the wall plane of at least three feet in length and two feet in depth; and
b. Landscaping at a minimum height of three feet at the time of installation along a minimum of 60 percent of the total length of the retaining wall.

A.9. Open Space

9.1 A minimum of 20 percent of the site area shall consist of landscaped open space.

Landscaped open space may be in the form of trees, hedgerows, flowerbeds, or ground cover vegetation, such as grass.

9.2 Common open space shall be provided in mixed-use developments in the form of public gathering spaces, such as plazas, outdoor dining areas, squares, or pocket parks. The space required is a minimum of 100 square feet per residential unit plus a minimum of two percent of the commercial square footage.

9.3 Common open space shall be provided in multi-family residential development projects in the form of gathering spaces, such as play areas, pool areas, patios, rooftop decks, or other community areas for the use of residents. The minimum space required is 100 square feet per residential unit.

9.4 Common open spaces shall provide shading for a minimum 15 percent of each open space area by either trees or structures, such as awnings, canopies, umbrellas, or a trellis. Tree shading shall be calculated by using the diameter of the tree crown at 15 years maturity. Shading from other built structures shall be calculated by using the surface area of the overhead feature.

Los Gatos DRAFT Objective Standards June 2022
A.10. Building Placement

10.1 To create a continuous streetscape appearance, development in a Community Place District shall place at least 75 percent of the ground floor of a building within five feet of the front and street-side setback (where applicable) requirement of the Town Code.

Figure A.10.1

10.2 A mixed-use residential project with a ground-floor commercial use shall provide site amenities on a minimum of 15 percent and maximum of 30 percent of the ground plane between the building and the front or street-side property line. The site amenities shall be comprised of any of the following elements:
a. Landscape materials or raised planters;
b. Walls designed to accommodate pedestrian seating, no higher than 36 inches; c. Site furnishings, including fountains, sculptures, and other public art; or d. Tables and chairs associated with the ground floor use.

Los Gatos DRAFT Objective Standards June 2022
B. BUILDING DESIGNS
B.1. Massing and Scale

1.1 Multiple-story building façades that face a street shall incorporate breaks in the building mass by implementing a minimum of three of the following solutions along the façades facing the street:
a. A minimum of 40 percent of the upper floor façade length shall step back from the plane of the ground-floor façade by at least six feet; Figure B.1.1a

Los Gatos DRAFT Objective Standards June 2022
b. Changes in the façade plane with a minimum change in depth of two feet for a minimum length along the façade of two feet at intervals of no more than 30 feet;
Figure B.1.1b
c. Recessed or projected covered entries with a minimum area of 24 square feet; Figure B.1.1c

Los Gatos DRAFT Objective Standards June 2022
d. An exterior arcade that provides a sheltered walkway within the building footprint with a minimum depth of eight feet, extending the full length of the façade;
Figure B.1.1d
e. Ground floor courtyards within the building footprint with a minimum area of 48 square feet; or
Figure B.1.1e

Los Gatos DRAFT Objective Standards June 2022
f. Vertical elements, such as pilasters or columns, that protrude a minimum of one foot from the façade and extend the full height of the building base or ground floor, whichever is greater.

Figure B.1.1f

1.2 Upper floors above two stories shall be set back by a minimum of five feet from the ground-floor façade.

1.3 Townhomes or rowhouses shall have no more than six contiguous units in any single building.

B.2. Parking Structure Design

2.1 The ground-floor façade of a parking structure facing a street or pedestrian walkway shall be fenestrated on a minimum of 40 percent of the façade.

2.2 Façade openings on upper levels of a parking structure shall be screened up to 30 percent of the opening to prevent full transparency into the structure.

2.3 Parking structures facing a street and greater than 40 feet in length shall include landscaping between the building façade and the street, or articulation of at least 25 percent of the façade length. The façade articulation shall be implemented by one of the following solutions:
a. An offset of the façade plane with a depth of at least 18 inches for a minimum of eight feet in horizontal length; or
b. A different building material covering the entire articulation change of 25 percent of the façade length.

Los Gatos DRAFT Objective Standards June 2022
B.3. Roof Design

3.1 At intervals of no more than 40 feet along the building façade, horizontal eaves shall be broken using at least one of the following strategies:
a. Gables;
b. Building projection with a depth of a minimum of two feet; c. Change in façade or roof height of a minimum of four feet; d. Change in roof pitch or form; or
e. Inclusion of dormers, parapets, and/or varying cornices.

Figure B.3.1

3.2 Skylights shall have a flat profile rather than domed.

Los Gatos DRAFT Objective Standards June 2022

3.3 The total width of a single dormer or multiple dormers shall not exceed 50 percent of the length of the roof.

Figure B.3.3

3.4 Eave depths shall not exceed 24 inches from the façade plane.

3.5 Carport roof materials shall be the same as the primary building.

B.4. Façade Design and Articulation

4.1 Buildings greater than two stories shall be designed to differentiate the base, middle, and top of the building on any street-facing façade. Each of these elements shall be distinguished from one another using at least two of the following solutions:

Los Gatos DRAFT Objective Standards June 2022
a. Variation in building mass for a minimum of 70 percent of the length of the street-facing façade through changes in the façade plane that protrude or recess with a minimum dimension of two feet;
Figure B.4.1a
b. Balconies or habitable projections with a minimum depth of two feet for a minimum of 20 percent length of the street-facing façade; Figure B.4.1b

Los Gatos DRAFT Objective Standards June 2022
c. Variation in façade articulation, using shade and weather protection components, projecting a minimum of three feet for a minimum of 20 percent length from the street-facing-façade;
Figure B.4.1c
d. Use of a belly band or horizontal architectural element with a minimum height of 10 inches between the first and second floor; or
Figure B.4.1d

Los Gatos DRAFT Objective Standards June 2022
e. The use of at least two different façade materials, each covering a minimum of 20 percent of the street-facing façade.

4.2 Buildings shall incorporate the same materials on all façades.

4.3 Variation in the street-facing façade planes shall be provided for buildings greater than one story by incorporating any combination of the following architectural solutions to achieve a minimum of 12 points:
▪ Architectural features, such as:
o Arcade or gallery along the ground floor; 8 points
o Awnings or canopies; 6 points
o Building cornice; 5 points
o Belly band, or horizontal architectural element, between the first and second floor; or
5 points
o Façade sconce lighting. 3 points
▪ Bay windows; 6 points
▪ Façade plane of upper floors steps back a minimum of five feet from the ground floor façade;
6 points
▪ Material and color changes; 5 points
▪ Balconies or Juliet balconies; 5 points
▪ Landscaped trellises or lattices; 5 points
▪ Chimneys; 3 points
▪ Wide overhangs with projecting brackets; 3 points
▪ Window boxes or plant shelves; or 3 points
▪ Decorative elements such as molding, ornamentation, or corbels.
3 points

4.4 Mixed-use buildings shall provide the following architectural elements along the ground floor:
a. A minimum of 60 percent of the street-facing façade between two and 10 feet above the adjacent grade shall consist of transparent windows; and b. A form of weather protection above storefront entries that extends from the façade a minimum of three feet.

4.5 Garage doors shall be recessed a minimum of 12 inches from the façade plane and along the street-facing façade shall not exceed 40 percent of the length of the building façade.

Los Gatos DRAFT Objective Standards June 2022

4.6 Changes in building materials shall occur at inside corners or at architectural features that break up the façade plane such as columns.

Figure B.4.6

Los Gatos DRAFT Objective Standards June 2022

4.7 Mixed-use development shall meet the following requirements:
a. Pedestrian entries to ground-floor and upper-floor commercial uses shall meet at least one of the following standards:
i. The entrance shall be recessed in the façade plane at least three feet in depth; or
ii. The entrance shall be covered by an awning, portico, or other architectural element projecting from the façade a minimum of three feet.

Figure B.4.7a

Los Gatos DRAFT Objective Standards June 2022
b. For ground-floor commercial uses, façades facing a street shall include windows, doors, or openings for at least 60 percent of the building façade that is between two and 10 feet above the level of the sidewalk.

Figure B.4.7b

4.8 Mirrored windows are prohibited.

4.9 A primary building entrance shall be provided facing a street or common open space. All building entrances shall be recessed from the façade plane or covered by a building projection of at least three feet in depth measured from the wall plane.

4.10 Awnings shall be subject to the following requirements:
a. A minimum vertical clearance of eight feet measured from the pedestrian pathway;
b. Shall not extend beyond individual storefront bays; and c. Shall not be patterned or striped.

4.11 For buildings abutting a single-family zoning district, rooftop and upper floor terraces and decks are prohibited.

Los Gatos DRAFT Objective Standards June 2022

4.12 For buildings abutting a single-family zoning district, balconies shall only be permitted on the street-facing building façade. Such balconies shall be without any projections beyond the building footprint.

4.13 Mixed-use buildings shall provide at least one of the following features along street-facing façades where the façade exceeds 50 feet in length:
a. A minimum five-foot offset from the façade plane for a length of at least 10 feet;
b. Multiple pilasters or columns, each with a minimum width of two feet; or c. Common open space, such as a plaza, outdoor dining area, or other spaces.

4.14 Continuous blank façades on any floor level shall not exceed 25 percent of the entire façade length along any street.

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From: William Walker < >
Sent: Tuesday, June 14, 2022 12:17 PM
To: Planning <[email protected]>
Subject: Objective Standards Draft Comments

EXTERNAL SENDER
Thank you for providing the draft for review by the citizens of Los Gatos.

Here are my comments.
1) Parking
California is shutting down fossil fuel and nuclear power plants leading to inadequate capacity when the sun goes down and people need to charge their electric cars at home. In the future, car charging will need to happen during the day. To facilitate Daytime charging, parking lots should be roofed with solar arrays, with chargers in the parking lot under the arrays. We already see this happening, for example in the AMD parking lots on Union Avenue.

The draft doesn’t mention solar panels over parking lots, it should. In fact, it should be a strong recommendation, instead of tree planting. Tall trees will shade solar panels.
2) Excessive regulation of Architectural styles
As I read the regulations pertaining to Architecture, I can’t help but feel they will hamstring Architects, leading to bland architecture. Figure B.4.6 is an example of excessive regulation (IMHO, the suggested change of building materials is ugly as shown in the figure.) One has to ask, would the proposed regulations prevent another North 40, which has been almost universally panned as resembling a stack of shipping containers, or worse? Perhaps a better approach to architecture is to assemble a panel of architects to review and critique design proposals before they are built.

William Walker
Sent from my iPad
EXHIBIT 4

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PREPARED BY: SEAN MULLIN, AICP and RYAN SAFTY
Senior Planner Associate Planner
Reviewed by: Planning Manager and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

PLANNING COMMISSION
REPORT
MEETING DATE: 6/22/2022
ITEM NO: 3

ADDENDUM
DATE: June 21, 2022
TO: Planning Commission
FROM: Joel Paulson, Community Development Director
SUBJECT: Review and Recommendation of the Draft Objective Standards to the Town Council.

DISCUSSION:

The following information is provided in response to Planning Commissioner questions regarding examples of subcommittee recommendations that were not included in the Draft Objective Standards. Staff has prepared Exhibit 5 addressing the specific examples provided.

The Planning Commission objective standards subcommittee held five meetings between July and December 2021. The subcommittee reviewed more than 500 existing subjective guidelines collated from Town documents to provide recommendations to staff on which subjective guidelines should be rewritten as objective standards. The subjective guidelines identified and included in the subcommittee’s recommendations are summarized in Exhibit 6 with references to the preliminary objective standards created in response to the subcommittee’s recommendations. Some items identified by the subcommittee were not included in the Draft Objective Standards. The reasons for exclusions varied but included: duplication of existing Town Code requirements; creation of unreasonable barriers to development; difficulties in enforcement; and not being appropriate when applied to multi-family and mixed-use projects.

In collaboration with the Town’s consultant, these recommendations were used to help create the Draft Objective Standards included as Exhibit 3 to the June 22, 2022, Planning Commission Staff Report.

Please note that many subjective guidelines identified by the subcommittee look different when converted into a draft standard. In writing the Draft Objective Standards, it was often necessary to identify the concept that a subjective guideline was attempting to address in order to create a standard that addresses the same concept. For example, one of the issues identified by the subcommittee was to “provide a foot candle limit for parking lot lights.” While it is possible to write a standard limiting the foot candle power of a parking lot light fixture, the standard may not completely address the overarching concept, which is to limit light spillage ATTACHMENT 6

PAGE 2 OF 2
SUBJECT: Draft Objective Standards
DATE: June 21, 2022
DISCUSSION (continued):
from exterior light fixtures onto neighboring properties. With this in mind, the draft objective standard developed from this subjective guideline is: Exterior lighting shall be fully shielded and restrain light to a minimum 30 degrees below the horizontal plane of the light source.

Uplighting is prohibited. (A.5.2).

A Planning Commissioner also emailed links to the City of Palo Alto objective standards, which is included as Exhibit 7.

Staff looks forward to the discussion and will be available to answer any questions.

EXHIBITS:

Previously received with the June 22, 2022, Staff Report:

1. Town Council Resolution 2019-053

2. Summary of feedback received during community engagement meetings

3. Draft Objective Standards

4. Public Comments received prior to 11:00 a.m., Friday, June 17, 2022 Received with this Addendum Report:

5. Staff response to Commissioner’s questions

6. Issues considered by the Objective Standards Subcommittee

7. Commissioner email regarding City of Palo Alto Objective Standards

Below are several examples of subjective guidelines that do not appear in the Draft Objective Standards followed by a response from staff in italics:

November 3, 2021 Meeting:

ACCESS
a. Pedestrian Access

7. Encourage the use of decorative bollards at all pedestrian crossings at street intersections to improve vehicle and pedestrian safety in the Downtown District.

16. Provide special textured and/or colored paving at pedestrian crossings of project entries.

Response: These types of improvements are typically in the right-of-way and subject to Town Engineering standards.

November 17, 2021 Meeting:

LANDSCAPING AND SCREENING
a. Street Trees and Streetscape Landscaping
Streetscape Landscaping

11. Landscaping adjacent to street rights-of-way, driveway entrances, or trails should be avoided when it might restrict sight distance or interfere with already established native plants.

Response: This is included in A.7.1 and Town Code Section 29.40.0315(a)(3) EXHIBIT 5